Humphrey Hotels' Operating Income (EBIT) Is $40 Million

Humphrey Hotels' operating income (EBIT) is $40 million. The company's times-interest-earned (TIE) ratio is 8.0, its tax rate is 40 percent, and its basic earning power (BEP) ratio is 10 percent. What is the company's return on assets (ROA) ?

A) 6.45%
B) 5.97%
C) 4.33%
D) 8.56%
E) 5.25%