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What are the tie ratio and return on invested capital

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TIE AND ROIC RATIOS

Question 1: The W.C. Pruett Corp. has $600,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 10%. In addition, it has $800,000 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 $3.9 million, its average tax rate is 40%, and its profit margin is 6%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two decimal places.

Reference no: EM132503567

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