We are given the following information for Pinanski, Inc. Sales$130,000Debt45,000Dividends5,000Equity40,000Interest rate7%Net income15,000Tax rate30%…

We are given the following information for Pinanski, Inc.
Sales$130,000Debt45,000Dividends5,000Equity40,000Interest rate7%Net income15,000Tax rate30%
Assume the company has no short-term debt. Also, assume that all asset turnover, profit margin, and dividend payout ratios remain constant. What is the company’s return on invested capital (ROIC)? (Hint: First, find EBIT working backwards.)
A.20.24%
B.22.45%
C.16.52%
D.18.28%
E.13.51%
F.14.94%
 
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