The company Meta has the following data:

Sales 1,000

EBIT 100

Equity 100

Debt 0

The company Beta has the following data

Sales 1,000

EBIT 100

Equity 100

Debt 0

But the company beta decides to increase leverage by paying a dividend of 50 at the beginning of the year. The interest rate is 5% Income tax rate is 25% .

Both companies had 500 shares at the beginning of the year, with a face value of 0.1 per share. At the end of the year, the market price for both companies is 750

Find

Net income

ROE

EPS

P/E ratio; for both companies and explain which one would be your choice if you were to invest in only one of them, explain in detail by using your calculations