What are its times-interest-earned ratio

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Reference no: EM131300159

The W.C. Pruett Corp. has $600,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 7%. 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 preffered stock. Its annual sales of $2.7 million, its average tax rate is 35%, and its profit margin is 7%. What are its times-interest-earned (TIE) ratio and its return on invested capital (ROIC)?

Reference no: EM131300159

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