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Steve Enterprise's total assets are $1,000,000 and its total current liabilities (consisting only of accounts payable and accruals) are $200,000. Duffert finances using only long-term

Steve Enterprise's total assets are $1,000,000 and its total current liabilities (consisting only of accounts payable and accruals) are $200,000. 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.

12.57%; 10.22%

b.

15.91%; 11.23%

c.

14.48%; 10.89%

d.

10.34%; 9.80%

e.

17.20%; 12.00%

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