1. RATIO CALCULATIONS
Thomson Trucking has $24 billion in assets, and its tax rate is 30%. Its basic earning power (BEP) ratio is 13%, and its return on assets (ROA) is 4%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places.
2. TIE AND ROIC RATIOS
The W.C. Pruett Corp. has $700,000 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 $4.48 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= x
ROIC= %