10 Nichols Products has $50 million of sales and $8 million of net income. Its total assets are $120 million. Assume Accounts Payable is $8 million, Accruals is $3 million, and Notes Payable is $9 million. The firm's capital structure consists of 24% debt and 76% common equity. The firm's is $1 million, and the firm's tax rate is 21%. What is the firm's ROIC? sales 50 mil interest expense a. 6.67 percent b. 7.01 percent 7.33 percent d. 7.92 percent e. 8.06 percent C. NI= 8million Assets 120 mill A/P = 8 mil 3 mil ACC C andini gri N/P = amil a mil Im 24% Debt 76% CE EBIT 11.13 inf 1 ROIC EBIT (1-T) ind Total invested capital 11.13 (79) 91-2 C

Nichols Products has $50 million of sales and $8 million of net income. Its total assets are $120 million. Assume Accounts Payable is $8 million, Accruals is $3 million, and Notes Payable is $9 million. The firm's capital structure consists of 24% debt and 76% common equity. The firm's interest expense is $1 million, and the firm's tax rate is 21%. What is the firm's ROIC? a. 6.67 percent b. 7.01 percent c. 7.33 percent d. 7.92 percent e. 8.06 percent soves=50milNI=8million24%DebtROIC=EBIT(1T)TotoliniestedAssets120mill76%CEcopitalA/P=8mil11.13(.79)ACC=3milN/P=amilEBITI1.B91.2=