Question
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
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 operating income of $10.0 million. NoEquity, Inc. finances its $25 million in assets with $24 million in assets with no debt and $25 million in equity. Both frims pay a tax rate of 30 percent on their taxable income. Calculate the net income and return on assets for the two firms. (enter your dollars answers in millions of dollars. Round all answers to 2 decimal places. ) AllDebt Income available for asset funders ____million Return on asset-funders' investment ____% All-equity ____million _____%
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