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You are considering a stock investment in one of two flrms (NoEquity, Inc, and NoDebt, lnc), both of which operate in the same industry and

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You are considering a stock investment in one of two flrms (NoEquity, Inc, and NoDebt, lnc), both of which operate in the same industry and have identical E8ITDA of $38.7 million and operating income of $22.5 milion. NoEquity, Inc. finances its $80 million in assets with $79 million in debt (on which it pays 10 percent interest annually) and $1 mition in equity. NoDebt, Inc. finances its $80 million in assets with no debt and $80 million in equity, Both firms pay a tox tate of 21 percent on their taxable income Colculate the net income and return on assets-funders' investments-for the two firms. (Enter your dollar answers in millions of dollars, Round "Net income" answers to 3 decimal places and "Return on assets" answers to 2 decimal places.)

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