1. MPI Incorporated has $8 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 13%, and its return on assets (ROA) is 6%. What is MPI's times-interest-earned (TIE) ratio? Round your answer to two decimal places.
2. 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 $3.78 million, its average tax rate is 40%, 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.