The Morris Corporation has $1000000 of debt outstanding and it pays an interest

The Morris Corporation has $1000000 of debt outstanding and it pays an interest rate of 9% annually. Morriss annual sales are $5 million its average tax rate is 30% and its net profit margin on sales is 3%. If the company does not maintain a TIE ratio of at least 4 to 1 its bank will refuse to renew the loan and BANKRUPTCY will result. What is Morriss TIE ratio? Round intermediate calculations to two decimal places