What are its tie ratio and its return on invested capital


PRICE/EARNINGS RATIO

A company has an EPS of $2.10, a book value per share of $22.68, and a market/book ratio of 3.1x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Round your answer to two decimal places.

TIE AND ROIC RATIOS

The W.C. Pruett Corp. has $600,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 10%. In addition, it has $600,000 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 $1.92 million, its average tax rate is 40%, 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

x

ROIC

%

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Financial Management: What are its tie ratio and its return on invested capital
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