Problem 3-3 Market/Book Ratio

Winston Washers' stock price is $70 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 700 million shares of common stock outstanding. What is Winston's market/book ratio? Round your answer to two decimal places. Do not round intermediate calculations

Problem 3-10 Times-Interest-Earned Ratio

The Morris Corporation has $750,000 of debt outstanding, and it pays an interest rate of 9% annually. Morris's annual sales are $3.75 million, its average tax rate is 40%, and its net profit margin on sales is 5%. If the company does not maintain a TIE ratio of at least 6 to 1, its bank will refuse to renew the loan and bankruptcy will result. What is Morris's TIE ratio? Round intermediate calculations to two decimal places. Round your answer to two decimal places.