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nt Average: /2 1.13 (TIE and ROIC Ratios) eBook Corp. has $200,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 8 and common equity, so it has no preferred stock. Its annual sales are $0.8 million, its average tax (ROIC)? Round your answers to two decimal places. %

nt Average: /2 1.13 (TIE and ROIC Ratios) eBook Corp. has $200,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 8 and common equity, so it has no preferred stock. Its annual sales are $0.8 million, its average tax (ROIC)? Round your answers to two decimal places. %

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Back to Assignment Attempts: Average: /2 12. Problem 4.13 (TIE and ROIC Ratios) еВook The W.C. Pruett Corp. has $200,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 8%. 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 $0.8 million, its average tax rate is 30%, and its profit margin is 4%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two decimal places. TIE ROIC
Transcribed Image Text:Back to Assignment Attempts: Average: /2 12. Problem 4.13 (TIE and ROIC Ratios) еВook The W.C. Pruett Corp. has $200,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 8%. 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 $0.8 million, its average tax rate is 30%, and its profit margin is 4%. 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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