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Thomson Trucking has $9 billion in assets, and its tax rate is 25%. Its basic earning power (BEP) ratio is 16%, and its return on assets (ROA) is 6.25%. What is its times-interest-earned (TIE) ratio? Round the answer to two decimal places.

Thomson Trucking has $9 billion in assets, and its tax rate is 25%. Its basic earning power (BEP) ratio is 16%, and its return on assets (ROA) is 6.25%. What is its times-interest-earned (TIE) ratio? Round the answer to two decimal places.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Thomson Trucking has $9 billion in assets, and its tax rate is 25%. Its basic earning power (BEP) ratio is 16%, and its return on assets (ROA) is 6.25%. What is its times-interest-earned (TIE) ratio? Round the answer to two decimal places.
Transcribed Image Text:Thomson Trucking has $9 billion in assets, and its tax rate is 25%. Its basic earning power (BEP) ratio is 16%, and its return on assets (ROA) is 6.25%. What is its times-interest-earned (TIE) ratio? Round the answer to two decimal places.
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