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Alumbat Corporation has $800,000 of debt outstanding, on which it pays 10% annual interest. Alumbat's annual sales are $3,200,000, its average tax rate is 40%, and its net profit margin is 6%. The company must maintain a TIE ratio of at least 4 times or its bank will refuse to renew its loan, resulting in bankruptcy. What is Alumbat's current TIE ratio?a. 2.4b. 3.4c. 3.6d. 4.0e. 5.0
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