Below are financial data on Bore Industries Inc. Assume that the corporate tax rate is 25%. Which of the following is true about the ROE and the ROIC for Bore? Income Statement (in $-billions) Revenues Cost of Goods Sold Gross Profit $400.00 ($200.00) $200.00 Assets Cash & Short-Term Investments Accounts Receivable Inventory Other Current Assets Total Current Assets Balance Sheet (in $-billions) Liabilities $15.00 Accounts Payable $60.00 Short-Term Debt $75.00 Current Maturities of Long-Term Debt $4.00 Other Current Liabilities $154.00 Total Current Liabilities $45.00 $25.00 $0.00 $15.00 $85.00 Selling, General, and Administrative Expenses Research and Development Depreciation & Amortization Operating Income ($30.00) ($50.00) ($50.00) $70.00 $80.00 Property, Plant & Equipment $250.00 Long-Term Debt Less Accumulated Depreciation ($40.00) Capital Lease Obligations Net Property, Plant & Equipment $210.00 Total Debt $0.00 $80.00 Other income EBIT $10.00 $80.00 Interest Expense Pretax Income Goodwill & Intangible Assets Other Long-Term Assets $90.00 Deferred Taxes $5.00 Other Long-Term Liabilities ($20.00) $10.00 ($7.50) $72.50 Income Tax Net Income ($18.13) $54.38 Total Liabilities $155.00 Shareholders' Equity $304.00 $459.00 Total Liabilities and Shareholders' Equity $459.00 Total Assets Ol. The ROE is closest to 11.9% and the ROIC is closest to 14.7%. II. The ROE is closest to 17.9% and the ROIC is closest to 13%. III. The ROE is closest to 17.9% and the ROIC is closest to 14.7%. IV. The ROE is closest to 11.9% and the ROIC is closest to 13%. Below are selected financial data on four different firms. Use the DuPont equation to identify why the ROEs of the four firms are different. Which of the following statements is true? Firm A $412 Selected Financial Data (in $ 1,000) Book Value of Assets Book Value of Equity Sales Net Income $3,000 $2,000 $6,000 $99,000 $79,000 $25,000 $9,000 $1,500 $750 $950 $80 $35,000 $15,000 $12,000 $1,980 B D Ol. The ROE for firm B is higher than for firm D because B uses more leverage. II. The ROE for firm D is higher than for firm C because D has a higher asset turnover. III. The ROE for firm A is higher than for firm D because A has higher asset turnover. IV. The ROE for firm D is higher than for firm B because D is more profitable