Problem $2-21$ Debt versus Equity Financing $($LG$2-1)$

You are considering a stock investment in one of two firms $($NoEquity$,$ Inc., and NoDebt, Inc.$),$ both of which operate in the same industry and have identical EBITDA of $$39\mathrm{.}3$ million and operating income of $$16\mathrm{.}5$ million. NoEquity, Inc., finances its $$75$ million in assets with $$74$ million in debt $($on which it pays $10$ percent interest annually$)$ and $$1$ million in equity. NoDebt, Inc., finances its $$75$ million in assets with no debt and $$75$ million in equity. Both firms pay a tax rate of $21$ percent on their taxable income.

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Calculate the net income and return on assets$-$funders' investments$-$for the two firms. $($Enter your dollar answers in millions of dollars. Round "Net income" answers to $3$ decimal places and "Return on assets" answers to $2$ decimal places.$)$

$\backslash$table$[[,$NoEquity,NoDebt$],[$Net income,,million,,$],[$Return on assets,,$\%,,]]$