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The Morrit Corporation has $ 5 0 0 , 0 0 0 of debt outstanding, and it pays an interest rate of 8 % annually.
The Morrit Corporation has $ of debt outstanding, and it pays an interest rate of annually. Morrit's annual sales are $ million, its average tax rate is and its net profit margin on sales is If the company does not maintain a TIE ratio of at least to then its bank will refuse to renew the loan, and bankruptcy will result. What is Morrit's TIE ratio?
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