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Firms HD and LD are identical except for their level of debt and the interest rates they pay on debt--HD has more debt and pays

Firms HD and LD are identical except for their level of debt and the interest rates they pay on debt--HD has more debt and pays a higher interest rate on that debt. Based on the data given below, what is the difference between the two firms' ROEs?

The answer should be 2.41% but I do not know how to get that answer.

Applicable to Both Firms

Firm HD's Data

Firm LD's Data

Assets

$300

Debt ratio

50%

Debt ratio

30%

EBIT

$60

Interest rate

12%

Interest rate

10%

Tax rate

35%

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