Problemduffert industries has total assets of 1000000 and, Ask an Expert

Finance

Problem:

Duffert Industries has total assets of $1,000,000 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 8% and its tax rate is 40%. The firm's basic earning power ratio is 15% and its debt-to capital rate is 40%.

Required:

Question: What are Duffert's ROE and ROIC?

Note: Please show basic calculation

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149244

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