The firms basic earning power ratio is 15 and its debt-to


Duffert Industries has total assets of $1,080,000 and total current liabilities (consisting only of accounts payable and accruals) of $100,000. 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 15% 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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Financial Management: The firms basic earning power ratio is 15 and its debt-to
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