Duffert Industries Has Total Assets of $1,000,000 and Total Current

Multiple Choice

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%.What are Duffert's ROE and ROIC?

A) 12.00%; 10.29%
B) 12.57%; 10.29%
C) 13.94%; 9.86%
D) 13.94%; 10.29%
E) 13.94%; 11.50%