The wc pruett corp has 500000 of interest-bearing debt


The W.C Pruett Corp. has $500,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 7%.

In addition, it has $800,000 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 $1.25 million, its average tax rate is 35%, and its profit margin is 5%.

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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Financial Management: The wc pruett corp has 500000 of interest-bearing debt
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