Question: 12. Problem 4.13 (TIE and ROIC Ratios) E eBook The W.C. Pruett Corp. has $350,000 of interest-bearing debt outstanding, and it pays an annual interest

12. Problem 4.13 (TIE and ROIC Ratios) E eBook The W.C.

12. Problem 4.13 (TIE and ROIC Ratios) E eBook The W.C. Pruett Corp. has $350,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 9%. 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 $2.17 million, its average tax rate is 40%, 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 ROIC %

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