Return on invested capital

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TIE AND ROIC RATIOS The W.C. Pruett Corp. has $650,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 12%. In addition, it has $600,000 of common stock on its balance sheet. It finances with only debt and common equity, so it has no preferred stock. Its annual sales are $3.25 million, its average tax rate is 35%, and its profit margin is 8%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two decimal places. TIE is 6.13x I just need help with the ROIC, I got 20.8% but it says thats incorrect

Reference no: EM131444553

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