Consider two small hypothetical firms, Firm U with zero debt financing and Firm L with $$10,000$ of $12\%$ debt. Both firms have $$20,000$ in invested capital and a $25\%$ federal$-$plus$-$state tax rate. $2)$ Complete the partial income statements and the firms' ratios. $2$ Total capital for both firms $3$ Tax rate for both firms Debt ratio for Firm Debt ratio for Firm L $6$ Cost of debt for Firm L FIRM U FIRM L $9$ TOTAL CAPITAL EQUITY $0\mathrm{.}250\mathrm{.}500\mathrm{.}25$ $ $6,0004,000$ $$9,000$ $$12,0006,0008,0002$ PROBABILITY $3$ SALES $24$ OPERCOSTS EBIT INTEREST EXPENSE EBT TAXES NET INCOME $0\mathrm{.}25$ $$6,0004,0000\mathrm{.}500\mathrm{.}25$ $$9,000$ $$12,0006,0008,000$ ROIC ROE TIE E $($ROIC $)$ E $($ ROE $)$ E$($TIE $)$ SD ROIC $)$ ROE $)$ SDTIE $)+$