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Duffert Industries has total assets of $1,050,000 and totalcurrent liabilities (consisting only of accounts payable andaccruals) of $150,000. Duffert finances using only long-term debtand common equity. The interest rate on its debt is 9% and its taxrate is 40%. The firm's basic earning power ratio is 15% and itsdebt-to capital rate is 40%. What are Duffert's ROE and ROIC? Donot round your intermediate calculations.a. 9.04%; 8.93%b. 16.12%; 11.66%c. 13.90%; 10.50%d. 11.26%; 9.14%e. 12.65%; 10.19%
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