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Need help with that. The W.C. Pruett Corp. has $550, 000 of interest-bearing debt outstanding, and it pays an annual interest rate of 12%. In
Need help with that.
The W.C. Pruett Corp. has $550, 000 of interest-bearing debt outstanding, and it pays an annual interest rate of 12%. 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 $1.76 million, its average tax rate is 30%, and its profit margin is 3%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two decimal places. TIE 1.14 x ROIC 6.56%Step by Step Solution
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