1. If sales increase by 8%, what should be the increase in EBIT? e) 2.43% a) 19.43% b) 22.67% c) 8.0% d) 9.34% Time left 1: The balance sheet and income statement shown below are for Zanobia Inc Note that the firm has no amortization charges does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over Balance Sheet (Millions of S) Assets 2016 Cash and securities Accounts receivable $2,145 Inventories 8,970 Total current assets 12,480 $23,595 $15,405 $39,000 Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities $7,410 4,290 5,460 $17,160 $7,800 Long-term bonds Total liabilities Common stock Retained earnings Total common equity $24,960 $5,460 8,580 $14,040 e X 0 1 0 0 Income Statement (Millions of S) Net sales 2016 $58,500 54,898 Operating costs except depreciation Depreciation Eamings before interest and taxes (EBIT) Less interest 1,024 $2,779 829 Eamings before taxes (EBT) Taxes $1,950 Net income 683 $1,268 Other data: Shares outstanding (mllions) Coamoa dividends (millions of S) Intrate on notes payable & L-T boods Federal plus state income tax rate Year-end stock price Refer to Exhibit above. What is the firm's return on invested capital? 500.00 $143.63 6.25% 35% $30.42 Select one: O a. 4.35% O b. 463% OC 5.05% O d. 4.17 Oe. 4.12%