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 EBITDA of $$39\mathrm{.}3$ million and operating

income of $$16\mathrm{.}5$ million. NoEquity, Inc., finances its $$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 firms pay a tax rate of $21$ percent on

their taxable income.

Calculate 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.$)$