Problem $3-10($Times$-$Interest$-$Earned Ratio$)$

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Times$-$Interest$-$Earned Ratio

The Morrit Corporation has $$450,000$ of debt outstanding, and it pays an interest rate of $8\%$ annually. Morrit's annual sales are $$3$ million, its average tax rate is $25\%,$ and its net profit margin on sales is $6\%.$ If the company does not maintain a TIE ratio of at least $5$ to $1,$ then its bank will refuse to renew the loan, and bankruptcy will result. What is Morrit's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places.

Answer: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$