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Duffert Industries has total assets of $940,000 and total current liabilities (consisting only of accounts payable and accruals) of $130,000. Duffert finances using only long-term
Duffert Industries has total assets of $940,000 and total current liabilities (consisting only of accounts payable and accruals) of $130,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 8% and its tax rate is 40%. The firm's basic earning power ratio is 14% and its debt-to capital rate is 40%. What are Duffert's ROE and ROIC? Do not found your intermediate calculations. a. 11.81%, 9.07% b. 14.95%; 9.75% OC 9.729; 8.29% O d. 13.75%; 9.46% Oe. 17.49%; 10.82%
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