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:

Adaptive Selling

A sales technique where the approach is tailored to the needs, wants, or interests of the customer, using feedback and interaction cues.

Formula Selling

A predefined sales technique or approach that follows a specific sequence or set of principles.

Upselling

A sales technique where the seller encourages the customer to purchase a higher-end product, an upgrade, or an additional item to make a more profitable sale.

Relationship Selling

A sales technique that prioritizes building a long-term relationship with customers rather than focusing solely on the immediate sale.