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Use the following information to find which firm has the higher ROE when EBIT is $7,500 Debt Unlevered Firm: Firm U Levered Firm: Firm L

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Use the following information to find which firm has the higher ROE when EBIT is $7,500 Debt Unlevered Firm: Firm U Levered Firm: Firm L $0 $60,000 Interest invested Capital Tax Rate 8% $100,000 32% 8% $100,000 32% Firm U Firm L Firm U and Firm L have the same ROE Unable to calculate with the information provided

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