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You are considering a stock investment in one of two firms (AliDebt, Incorporated, and AliEquity, Incorporated), both of which operate in the same industry and

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You are considering a stock investment in one of two firms (AliDebt, Incorporated, and AliEquity, Incorporated), both of which operate in the same industry and have identical EBITDA of $15.0 million and operating income of $11.0million. AllDebt, Incorporated, finances its $35 million in assets with $34 milion in debt (on which it pays 10 percent interest annually) and $1 million in equity. AlEquity. Incorporated, finances its $35 million in assets with no debt and $35 million in equity. Both firms pay a tax rate of 21 percent on their. taxable income. Calculate the income avallable to pay the asset funders (the debt holders and stockholders) and resulting return on asset-funders? investment for the two firms Note: Enter your dollar answers in millions of dollars. Round all answers to 3 decimal places

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