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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

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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 $13,5 million. NoEquity. Inc finances its $75 million in assets with $74 million in debt on which it pays 10 percent interest annually and $1 million in equity. NoDebt, Inc finances its $75 million in assets with no debt and $75 million in equity. Both timms pay a tax rate of 30 percent on their taxable income. Calculate the net income and return on assets for the two tims. (Enter your dolor answers in millions of dollars. Round allonswers to 2 decimal places.) NoEquity Nu income Rolimon NoDebt milion

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