Duffert Industries Has Total Assets of $1,040,000 and Total Current

question 106

Multiple Choice

Duffert Industries has total assets of $1,040,000 and total current liabilities (consisting only of accounts payable and accruals) of $105,000.Duffert finances using only long-term debt and common equity.The interest rate on its debt is 8% and its tax rate is 25%.The firm's basic earning power ratio is 13% and its debt-to capital rate is 40%.What are Duffert's ROE and ROIC? Do not round your intermediate calculations.

• A) 6.48%;9.11%
• B) 8.37%;9.44%
• C) 9.57%;10.52%
• D) 9.97%;10.84%
• E) 10.67%;12.04%

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