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You are considering stock investment in one of the AlDebt he and AllEculty, Inc. both of which operate in the same industry and have identical

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You are considering stock investment in one of the AlDebt he and AllEculty, Inc. both of which operate in the same industry and have identical operating income of $600.000 Al Debt, Inc finances $12 million in sets with similion inton which pays 10 percent interest annually and 502 million in equity AlEquity, the finances its $12 million in assets with no debt and $12 million in ecurty Both firms pay a tax rate of 30 percent on the table income What are the asset funder the debt holders and stockholders resulting return on assets for the two firms? O 50% and 50%, respectively 0 375% and 35% respectively 2977% and 35 respectively O 375 375.reteively You are considering stock investment in one of two firms (Debt, Inc. and Alquity, Inc), both of which operate in the same industry and have identical operating income of $600,000 AlDebt, Inc finances its 512 million in assets with 51 million in debt on which it pays 10 percent interest annually and $2 million in equity, AliEquity, Inc. finances is $12 milion in assets with no debt and 512 milion in equity Both firms pay tax rate of 30 percent on the table income. What are the asset funders the debt holders and stockholders) resulting retum on esses for the two fems? 50% and 50% respectively 375% and 35%, respectively 0 2917% and 35. respectively O 375% and 375.respectively

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