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Duffert Industries has total assets of $1,010,000 and total current liabilities (consisting only of accounts payable and accruals) of $125,000. Duffert finances using only
Duffert Industries has total assets of $1,010,000 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 9% 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.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
14th edition
1285867971, 978-1305480742, 1305480740, 978-0357686393, 978-1285867977
