Duffert Industries has total assets of $1,080,000 and total current liabilities (consisting only of accounts payable and accruals)of $100,000.Duffert finances using only long-term debt and common equity.The interest rate on its debt is 7% and its tax rate is 40%.The firm's basic earning power ratio is 15% and its debt-to capital rate is 40%.What are Duffert's ROE and ROIC? Do not round your intermediate calculations.
A) 9.33%;8.23%
B) 11.34%;8.53%
C) 13.49%;9.62%
D) 14.35%;9.92%
E) 16.07%;11.01%

Question

Quizplus · Accepted Answer

The Answer of Duffert Industries has total assets of $1,080,000 and total current liabilities (consisting only of accounts payable and accruals)of $100,000.Duffert finances using only long-term debt and common equity.The interest rate on its debt is 7% and its tax rate is 40%.The firm's basic earning power ratio is 15% and its debt-to capital rate is 40%.What are Duffert's ROE and ROIC? Do not round your intermediate calculations.
A) 9.33%;8.23%
B) 11.34%;8.53%
C) 13.49%;9.62%
D) 14.35%;9.92%
E) 16.07%;11.01%

Duffert Industries Has Total Assets of $1,080,000 and Total Current