Duffert Industries has total assets of $1,050,000 and total current liabilities (consisting only of accounts payable and accruals) of $150,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 9% 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.
A. 9.04%; 8.93%
B. 11.26%; 9.14%
C. 12.65%; 10.19%
D. 13.90%; 10.50%
E. 16.12%; 11.66%
Answer: D
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