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What are its TIE ratio and its return on invested capital

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Question - The W.C. Pruett Corp. has $1,000,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 12%. In addition, it has $600,000 of common equity on its balance sheet. It finances with only debt and common equity, so it has no preferred stock. Its annual sales are $6.6 million, its average tax rate is 25%, and its profit margin is 2%. What are its TIE ratio and its return on invested capital (ROIC)?

Reference no: EM133112150

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