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Times Interest Earned (TIE) Ratio and Financial Stability : Compute the TIE ratio for a company with EBIT of $200,000 and interest expense of $50,000.

Times Interest Earned (TIE) Ratio and Financial Stability: Compute the TIE ratio for a company with EBIT of $200,000 and interest expense of $50,000. Discuss what this ratio indicates about the company’s financial stability and its ability to meet its debt obligations. Evaluate how changes in EBIT or interest expense could impact this ratio.

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