00 Chapter 14 Practice Test Question 10 " Leverage and ROE Firm A uses debt and has $580 in equity. Firm B does not use debt and has $1,000 in equity. Both firms pay a 39% tax rate and both firms have EBIT of $57. Firm A has interest expense of $32. There are no other expenses. If EBIT doubles for both firms ROE for Firm A will be_ ; ROE for Firm B will be points Skipped Multiple Choice eBook O 10.12%; 6.65% Print References O 8.62%: 6.95% O 9.32%; 775% O 8.22%; 6.45%