What is the Return on Invested Capital (ROIC) if EBIT is $400,000, tax rate is 25%, and total invested capital is $2m? 15% 20% 12.5% 10% Firm U has no debt, $20,000 invested capital, and 25% tax rate. Firm L has $10,000 of 12% debt, $20,000 of invested capital, and 25% tax rate. Which of the following is TRUE? ROIC is much gillater for Firm L U has higher expected ROE because ROIC >rd (1-1) U has much wider ROE and EPS swings because of fixed interest charges Firm L has more risk and more variability in ROE and EPS because of fixed interest charges