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Farm AB and Firm YZ are identical except for their debt to-total-assets rations (DATA) and interest rates on debt. Fach has $250,000 in 500.000 Tanda

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Farm AB and Firm YZ are identical except for their debt to-total-assets rations (DATA) and interest rates on debt. Fach has $250,000 in 500.000 Tanda 40 percent marginal tax rate Firm AB has a D/TAratio of 40 percent and pays 7.5 percent interest on its debit, whereas YZ has a 60 percent D/TAratio and pay 10 percent interest on debt. Each firm has 5.000 shares of common stock outstanding Calculate each firm's EPS and ROEROE Net Income Equity For the toolbar, press ALT+F10 (PC or ALT.PN+F10 Mac) BIVS Paragraph Arial A2I XOGO 6 X X 8 T The T SB C D ( 1 Apr +] r BE QUESTIONS

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