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Use the following information to find the ROE of Firm U when EBIT is $12,000 Debt $0 Interest invested Capital Tax Rate 8% $100,000 $100,000

Use the following information to find the ROE of Firm U when EBIT is $12,000 Debt $0 Interest invested Capital Tax Rate 8% $100,000 $100,000 325 Unlevered Firm: Firm Levered Firm: Firm 32% $60,000 8% 8.2% 12.2% 4.6% 5.1%

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