The W.C. Pruett Corp. has $600,000 of interest-bearing debt outstanding, and it pays an annual interest...

The W.C. Pruett Corp. has $600,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 11%. 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 $1.74 million, its average tax rate is 35%, 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.

Expert Solution

jeff jeffy answered 1 year ago

The W.C. Pruett Corp. has $600,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 11%.

The W.C. Pruett Corp. has $600,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 11%. 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 $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...

The W.C. Pruett Corp. has $550,000 of interest-bearing debt outstanding, and it pays an annual interest...

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 $2.64 million, its average tax rate is 25%, and its profit margin is 7%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two...

The W.C. Pruett Corp. has $250,000 of interest-bearing debt outstanding, and it pays an annual interest...

The W.C. Pruett Corp. has $250,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 8%. 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 $1.6 million, its average tax rate is 40%, and its profit margin is 7%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two...

The W.C. Pruett Corp. has $900,000 of interest-bearing debt outstanding, and it pays an annual interest...

The W.C. Pruett Corp. has $900,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 9%. In addition, it has $700,000 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 $3.24 million, its average tax rate is 25%, and its profit margin is 5%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two...

The W.C. Pruett Corp. has $350,000 of interest-bearing debt outstanding, and it pays an annual interest...

The W.C. Pruett Corp. has $350,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 8%. In addition, it has $700,000 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 $0.91 million, its average tax rate is 35%, and its profit margin is 5%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two...

The W.C. Pruett Corp. has $900,000 of interest-bearing debtoutstanding, and it pays an annual interest...

The W.C. Pruett Corp. has $900,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 10%. 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 $4.86 million, its average tax rate is 25%, and its profit margin is 6%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two...

TIE AND ROIC RATIOS The W.C. Pruett Corp. has $800,000 of interest-bearing debt outstanding, and it...

TIE AND ROIC RATIOS The W.C. Pruett Corp. has $800,000 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 $2.56 million, its average tax rate is 40%, and its profit margin is 3%. What are its TIE ratio and its return on invested capital (ROIC)? Round...

The Morrit Corporation has $720,000 of debt outstanding, and it pays an interest rate of 8%...

The Morrit Corporation has $720,000 of debt outstanding, and it pays an interest rate of 8% annually. Morrit's annual sales are $3 million, its average tax rate is 25%, and its net profit margin on sales is 3%. If the company does not maintain a TIE ratio of at least 6 to 1, then its bank will refuse to renew the loan, and bankruptcy will result. What is Morrit's TIE ratio? Do not round intermediate calculations. Round your answer to...

A corporation has $900,000 of debt outstanding, and it pays an interest rate of 6 percent...

A corporation has $900,000 of debt outstanding, and it pays an interest rate of 6 percent annually on its bank loan. The firm's annual sales are $4,200,000; its average tax rate is 30 percent; and its net profit margin on sales is 5 percent. If the company does not maintain a times interest earned (TIE) ratio of at least 4 times, its bank will refuse to renew its loan, and bankruptcy will result. What is this firm's current TIE ratio?

The Morris Corporation has $800,000 of debt outstanding, and it pays an interest rate of 10%...

The Morris Corporation has $800,000 of debt outstanding, and it pays an interest rate of 10% annually. Morris's annual sales are $4 million, its average tax rate is 30%, and its net profit margin on sales is 3%. If the company does not maintain a TIE ratio of at least 5 to 1, its bank will refuse to renew the loan and bankruptcy will result. What is Morris's TIE ratio? Do not round intermediate calculations. Round your answer to two...

Question