Wingding Inc. has $1,000,000 of debt outstanding, and it pays an interest rate of $100,000...
90.2K
Verified Solution
Link Copied!
Question
Finance
Wingding Inc. has $1,000,000 of debt outstanding, and it pays an interest rate of $100,000 annually on its bank loan. Annual sales are $6,000,000; its average tax rate is 40 percent; and its net profit margin on sales is 10 percent. Earnings before taxes is $1,000,000. What is Wingding's current TIE ratio? Answer to two decimal places
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
