You have the following information about two firms, Debt Free, Incorporated and Debt Spree, Incorporated. Both firms have the same prospects for sales and EBIT, and both have the same level of assets, tax rate and borrowing rate. They differ in their use of debt financing. Scenario Sales Bad year $ 200 EBIT $ 16 Normal year $ 275 $ 40 Good year $ 380 $ 47 Total assets Tax rate Debt Equity Borrowing rate Debt Free $ 250 21% Debt Spree $ 250 21% $ 0 $ 250 $ 150 $ 100 16% 16% Required: a. Calculate the interest expense for each firm: Interest expense for Debt Free Interest expense for Debt Spree b. Calculate the following items for each firm for each scenario (bad year, normal year, good year): return on assets (ROA), net profit, and return on equity (ROE). (Use a minus sign to indicate negative answers. Round your answers to 2 decimal places.) Scenario Bad year Normal year Good year ROA Debt Free Net Profit ROE ROA Debt Spree Net Profit ROE % % % % % % % % % % % %