What are its tie ratio and its return on invested capital

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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 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 preferred stock. Its annual sales are $2.7 million, its average tax rate is 35%, and its profit margin is 7%. What are its TIE ratio and its return on invested capital (ROIC)?  Please provide a detailed response that demonstrates how the answer was arrived at.

Reference no: EM131234452

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