Question: Back ASSIST Attempts Average/2 9. Problem 4.13 (TIE and ROIC Ratios) eBook Problem Walk-Through The W.C. Pruett Corp. has $1,000,000 of interest-bearing debt outstanding, and

Back ASSIST Attempts Average/2 9. Problem 4.13 (TIE and ROIC Ratios)

Back ASSIST Attempts Average/2 9. Problem 4.13 (TIE and ROIC Ratios) eBook Problem Walk-Through The W.C. Pruett Corp. has $1,000,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 10%. In addition, it has $700,000 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 $5.4 million, its average tax rate is 25%, and its profit margin is 7%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two decimal places. TIE: X ROIC: % Grade it Now Save & Continue Continue without saving

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