Duffert Industries has total assets of $970,000 and total current liabilities (consisting only of accounts payable and accruals) of $115,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 9% and its tax rate is 25%. The firm's basic earning power ratio is 17% and its debt-to-capital ratio [Long-term debt/(Long-term debt + Common Equity)] is 40%. What are Duffert's ROE and ROIC? Do not round your intermediate calculations.
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Duffert Industries has total assets of $970,000 and total current liabilities (consisting only of accounts payable and accruals) of $115,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 9% and its tax rate is 25%. The firm's basic earning power ratio is 17% and its debt-to-capital ratio [Long-term debt/(Long-term debt + Common Equity)] is 40%. What are Duffert's ROE and ROIC? Do not round your intermediate calculations.
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- Duffert Industries has total assets of $970,000 and total current liabilities (consisting only of accounts payable and accruals) of $115,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 9% and its tax rate is 25%. The firm's basic earning power ratio is 17% and its debt-to capital rate is 40%. What are Duffert's ROE and ROIC? Do not round your intermediate calculations. Group of answer choices 10.90%; 12.44% 13.63%; 14.46% 15.54%; 16.06% 8.86%; 12.73% 12.68%; 14.03%. Stepwise pls correct.Duffert Industries has total assets of $970, 000 and total current liabilities (consisting only of accounts payable and accruals) of $115,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 9% and its tax rate is 25%. The firm's basic earning power ratio is 17% and its debt - to capital rate is 40% What are Duffert's ROE and ROIC? Do not round your intermediate calculations. Group of answer choices a. 12.68%; 14.03% b.13.63%; 14.46% с 10.90%; 12.44% d. 15.54%; 16.06% e. 8.86%; 12.73%Duffert Industries has total assets of $1,040,000 and total current liabilities (consisting only of accounts payable and accruals) of $105,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 7% and its tax rate is 25%. The firm's basic earning power ratio is 14% and its debt-to capital rate is 40%. What are Duffert's ROE and ROIC? Do not round your intermediate calculations. O a. 10.22% ; 7.94% O b. 13.54%; 10.37% O c. 15.97%; 11.68% O d. 8.30%; 7.85% O e. 11.75 %; 9.06%
- The Mikado Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .49 and a current ratio of 1.38. Current liabilities are $2,450, sales are $10,630, profit margin is 10 percent, and ROE is 15 percent. What is the amount of the firm’s net fixed assets?The Lawrence Company has a ratio of long term debt to long term debt plus equity of .39 and a current ratio of 1.7. Current liabilities are 950, sales are 6370, profit margin is 9.8 percent, and ROE is 20 percent. What is the amount of the firms net fixed assets?Bolero Corporation has one long term loan (interest bearing debt) of $700,000 at an interest rate of 8%. The company has accounts payable of $300,000 (non-interest bearing) and equity of $1,000,000. It estimates that its cost of equity is 16%. Its tax rate is 35%. A. What is the company’s weighted average cost of capital on interest bearing debt and equity? B. What is Bolero Corporation’s weighted average cost of capital on all liabilities and equity (or total invested capital)?
- Legget 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.The Ashwood Company has a long-term debt ratio of .45 and a current ratio of 1.25. Current liabilities are $875, sales are $5,780, profit margin is 9.5 percent, and ROE is 18.5 percent. What is the amount of the firm's net fixed assets?The lawrence company has a ratio of long term debt to long term debt plus equity of .25 and a current ratio of 1.5. current liabilities are 900, sales are 6230 , profit margin is 8.1 percent what is the amount of the firms net fixt assets ?
- The Paulson Company’s year-end balance sheet is shown below. Its cost of commonequity is 14%, its before-tax cost of debt is 10%, and its marginal tax rate is 40%.Assume that the firm’s long-term debt sells at par value. The firm’s total debt, which isthe sum of the company’s short-term debt and long-term debt, equals $1,167. The firm has576 shares of common stock outstanding that sell for $4.00 per share. Calculate Paulson’sWACC using market-value weights.Ivanhoe Network Associates has a current ratio of 1.60, where the current ratio is defined as follows: current ratio = current assets/current liabilities. The firm's current assets are equal to $1,236,000, its accounts payable are $422,000, and its notes payable are $350,000. Its inventory is currently at $ 724,000. The company plans to raise funds in the shot - term debt market and invest the entire amount in additional inventory. How much can notes payable increase without the current ratio falling below 1.50?The Jacks corporation reported the following:i. Net income $ 840,000.00ii. Accounts payable and accruals $1,270,650.00iii. Interest expense $ 305,000.00iv. Return on asset 16%v. Tax rate 30%As the company’s business analyst, you know that Jacks finances only with debt and equity. 45%of its total invested capital is debt. Calculate and interpret the basic earnings power ratio, thereturn on equity, and the return on invested capital. Please show work