(Capital structure analysis) Last year the Rondoelea Products Company had $134 million in annual sales...
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(Capital structure analysis) Last year the Rondoelea Products Company had $134 million in annual sales and a net profit margin of 10.2 percent. In addition, Rondoelea's average tax rate was 30 percent. If Rondoelea had $40 million of debt outstanding with an average interest rate of 9.8 percent, what is the firm's times interest earned ratio? The times interest earned ratio is times. (Round to one decimal place.)
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