Problem $4\mathrm{.}13($TIE and ROIC Ratios$)$

The W$.$C$.$ Pruett Corp. has $$1,000,000$ of interest$-$bearing debt outstanding, and it pays an annual interest rate of $12\%.$ In addition, it has $$600,000$ 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 $$4\mathrm{.}2$ 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.

TIE: $$

ROIC: $\%$

$$

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