A firm has total interest charges of $20,000 per year, sales of $2 million, a tax rate of 25%, and a profit margin of 6%. What is the firm's TIE, if its profit margin decreases to 3% and its interest charges double to $40,000 per year?

A firm has total interest charges of $20,000 per year, sales of $2 million, a tax rate of 25%, and a profit margin of 6%. What is the firm's TIE, if its profit margin decreases to 3% and its interest charges double to $40,000 per year? a. 3.0