Below are financial data on Heavyweight Industries Inc. Assume that the corporate tax rate is 25%. Which of the following is true about the ROE and the ROIC for Heavyweight?

I.

The ROE is closest to 5.9% and the ROIC is closest to 8.8%.

II.

The ROE is closest to 25.3% and the ROIC is closest to 8.8%.

III.

The ROE is closest to 25.3% and the ROIC is closest to 11.4%.

IV.

The ROE is closest to 5.9% and the ROIC is closest to 11.4%.

\begin{tabular}{lr} \multicolumn{1}{l}{ Income Statement (in \$-billions) } \\ \hline Revenues & $200.00 \\ Cost of Goods Sold & ($140.00) \\ Gross Profit & $60.00 \\ Selling, General, and Administrative Expenses & ($15.00) \\ Research and Development & ($10.00) \\ Depreciation \& Amortization & ($15.00) \\ Operating Income & $20.00 \\ Other income & $3.00 \\ EBIT & $23.00 \\ Interest Expense & $7.50) \\ Pretax Income & $15.50 \\ Income Tax & $11.63 \\ \hline Net Income & $88) \\ \hline \end{tabular} Balance Sheet (in \$-billions)