2.7

7. Problem 4.13 (TIE and ROIC Ratios) eBook Problem Walk-Through The W.C. Pruett Corp. has $800,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 8%. 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 $2.16 million, its average tax rate is 25%, 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. TIE: ROIC: %