The Tarpon Corp has $250,000 of debt outstanding, and it pays an interest rate of 8% annually. Its annual sales are $800,000 its average tax rate is 25%, and its net profit margin on sales is 10%. If the company does not maintain a times interest earned (TIE) ratio of greater than 5 to 1. then its bank will refuse to renew the loan and bankruptcy will result. Holding sales constant at what operating (EBIT) margin would the bank refuse to renew the loan? 15.17% 12.50% 14.06% 17.50%