The Morris Corporation has $800,000 of debt outstanding, and it pays an interest rate of 5% annually. Morriss annual sales are $4 million, its average tax rate is 40%, and its net profit margin on sales is 3%. 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 Morriss TIE ratio?

		6.000
		3.000
		4.125
		3.750
		5.000