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

question 18

Multiple Choice

Duffert Industries has total assets of $1,000,000 and total current liabilities (consisting only of accounts payable and accruals) of $125,000.Duffert finances using only long-term debt and common equity.The interest rate on its debt is 8% 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?

• A)12.00%; 10.29%
• B)12.57%; 10.29%
• C)13.94%; 9.86%
• D)13.94%; 10.29%
• E)13.94%; 11.50%

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Definitions:

Life Span

The duration or length of life of an organism, object, or system, often used in the context of product life cycles or human longevity.

Portfolio

In finance, a collection of investments.

Projects

Individual or collaborative efforts undertaken to achieve a specific goal within a certain timeframe.

Monte Carlo Simulation

A computational technique that utilizes random sampling and statistical modeling to estimate mathematical functions and mimic the operation of complex systems.