Question
MPI Incorporated has $5 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 12%, and its return on
MPI Incorporated has $5 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 12%, and its return on assets (ROA) is 5%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.
What is MPI's times-interest-earned (TIE) ratio? Round your answer to two decimal places.
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| TIE ratio | |
| Total Assets | $5,000,000,000.00 |
| Tax Rate | 35.00% |
| Basic Earning Power (BEP) Ratio | 12.00% |
| Return on Assets (ROA) | 5.00% |
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Foundations Of Financial Management
Authors: Stanley Block
8th Canadian Edition
0070965447, 9780070965447
