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Duffert Industries has total assets of $1,000,000 and total current liabilities (consisting only of accounts payable and accruals) of $145,000. Duffert finances using only long-term
Duffert Industries has total assets of $1,000,000 and total current liabilities (consisting only of accounts payable and accruals) of $145,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 7% and its tax rate is 40%. The firm's basic earning power ratio is 16% and its debt-to capital rate is 40%. What are Duffert's ROE and ROIC? Do not round your intermediate calculations. a. 10.34%; 9.88% b. 12.57%; 10.22% c. 14.48%; 10.89% d. 15.91%; 11.23% e. 17.19%; 12.46% detailed steps needed! Thank you!
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