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The Smith Corporation has $700,000 of debt outstanding, and it pays an interest rate of 9% annually. The company's annual sales are $4 million, its

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The Smith Corporation has $700,000 of debt outstanding, and it pays an interest rate of 9% annually. The company's annual sales are $4 million, its average tax rate is 35%, and its net profit margin on sales is 5%. What is the company's times interest earned (TIE) ratio? O 5.41 5.88 5.27 5.90

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