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28. 20 points. You are presented with two companies with the same total equity of P200 Million Pesos. However, they have raised the money needed
28. 20 points. You are presented with two companies with the same total equity of P200 Million Pesos. However, they have raised the money needed to finance investments differently as follows: A Company B Company Debt, 10% 40,000,000 160,000,000 Shareholders' Equity 160,000,000 40,000,000 Total Equities 200,000,000 200,000,000 EBIT 50,000,000 50,000,000 Interest Expense 4,000,000 16,000,000 Profit before tax 46,000,000 34,000,000 Tax 18,400,00 13,600,000 Profit 27,600,000 20,400,000 Determine the following: a. Return on Assets b. Return on Equity! C. Evaluate the financial leverage of the companies d. Comment on the performance of the companies
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