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with work please Firms HD and LD are identical except for their use of debt and the interest rates they pay--HD has more debt and

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with work please
Firms HD and LD are identical except for their use of debt and the interest rates they pay--HD has more debt and thus must pay a higher interest rate. Based on the data given below, calculate Return on Equity for both firms. (2 points) Firm HD's Data Applicable to Both Firms Capital $5,000 $2500 Tax rate 30% 70% 10% Firm LD's Data w 30% Int. rate EBIT Int. rate 8%

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