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please show work or formulas in excel 6. Two firms, U and L, have identical annual EBIT (no tax); Firm U has $1000 Equity and
please show work or formulas in excel
6. Two firms, U and L, have identical annual EBIT (no tax); Firm U has $1000 Equity and Firm L has $500 Equity and $500 Debt at 10% of interest. Assume 3 possible outcomes for U as below (the 3 outcomes occur with the same probability). What is the ROE for Firm U and L, respectively? Which firm's ROE is more volatile Step by Step Solution
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