31. There are two firms: Firm U and Firm L. Both firms have $100M total assets and $15M EBIT (earnings before interest and taxes). Firm U is an unleveraged firm without debt. Firm L is a leveraged firm with 50% of debt and 50% of common equity. The pre-tax cost of debt for Firm L is 10%. Both firms have 30% corporate tax rate.

Calculate the return on equity (ROE) for firm U 10.0% 11.5% 14.0% 16.2%

Based on the information above whats the return on equity (ROE) for firm L 10.0% 11.5% 14.0% 16.2%