8: Duffert Industries has total assets of $1,020,000 and total current liabilities (consisting only of accounts payable and accruals) of $110,000. Duffert finances using only long-term debt and common

Place your order today and enjoy professional academic writing services—From simple class assignments to dissertations. Give us a chance to impress you.


Order a Similar Paper Order a Different Paper

8: Duffert Industries has total assets of $1,020,000 and total current liabilities (consisting only of accounts payable and accruals) of $110,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 8% and its tax rate is 25%. The firm’s basic earning power ratio is 13% 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.

9- Last year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets (which is equal to its total invested capital) of $370,000. The debt-to-total-capital ratio was 17%, the interest rate on the debt was 7.5%, and the firm’s tax rate was 25%. The new CFO wants to see how the ROE would have been affected if the firm had used a 50% debt-to-total-capital ratio. Assume that sales, operating costs, total assets, total invested capital, and the tax rate would not be affected, but the interest rate would rise to 8.0%. By how much would the ROE change in response to the change in the capital structure? Do not round your intermediate calculations.

17- Datta Computer Systems is considering a project that has the following cash flow data. What is the project’s IRR? Note that a project’s projected IRR can be less than the WACC (and even negative), in which case it will be rejected.Year                             0                 1                 2                 3

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

Cash flows          -$1,090          $490          $510          $530

Writerbay.net

When writing your assignment, we aim to help you get an A, not just beat the deadline.


Order a Similar Paper Order a Different Paper