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You are considering a stock investment in one of two rms (NoEquity, Inc., and NoDebt, |nc.), both of which operate in the same industry and

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You are considering a stock investment in one of two rms (NoEquity, Inc., and NoDebt, |nc.), both of which operate in the same industry and have identical operating income of $15.5 million. NoEquity, |nc., nances its $?5 million in assets with $?4 million in debt (on which it pays 10 percent interest annually) and $1 million in equity. NoDebt, |nc., nances its $75 million in assets with no debt and $75 million in equity. Both rms pay a tax rate of 30 percent on their taxable income. Calculate the net income and return on assets for the two rms. [Enter your dollar answers in millions of dollars. Round all answers to 2 decimal places} NoEquity NoDebt $:m $: m Return on assets |:| % :I "In

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