Question
Alumbat Corporation has $1,000,000 of debt outstanding. It pays an interest rate of 8% annually on this debt. Alumbat's annual sales are over $5,000,000 ,
Alumbat Corporation has $1,000,000 of debt outstanding. It pays an interest rate of 8% annually on this debt. Alumbat's annual sales are over $5,000,000 , its tax rate is 40% and its profit margin on sales (net profit margin) is 6%. The company must maintain a TIE ratio of at least 4 times. Calculate Alumbat's current TIE ratio
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TExES Business And Finance Secrets Study Guide
Authors: TExES Exam Secrets Test Prep Team
1st Edition
1516706862, 978-1516706860
