Its average tax rate is 40 and its profit margin is 7 what


The W.C. Pruett Corp. has $700,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 7%. 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 $4.34 million, its average tax rate is 40%, 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  %

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Financial Management: Its average tax rate is 40 and its profit margin is 7 what
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