What are tie ratio

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Question 1: The W.C. Pruett Corp. has $450,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 10%. In addition, it has $700,000 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 $1.62 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)? Round your answers to two decimal places.

Question 2: A ?rm has a pro?t margin of 2% and an equity multiplier of 1.9. Its sales are $400 million. and it has total assets of $240 million. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places. %

Reference no: EM132475221

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