1. Boulder, Inc. exports chairs to Europe invoiced in US dollars and competes against European companies. Why will Boulder’s profit be likely to increase if the euro strengthens relative to the dollar?
2. Thomson Trucking has $14 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 14%, and its return on assets (ROA) is 4%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places.