You have the following information about two firms, Debt Free, Inc. and Debt Spree, Inc. 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 Bad year Normal year Good year Sales EBIT 200 12 275 34 380 51 Total assets Tax rate Debt Equity Borrowing rate Debt Free 250 35 % @ 250 16 % Debt Spree 250 35 % 150 100 16 % Calculate the interest expense for each firm: Interest expense for Debt Free $ 0 Interest expense for Debt Spree $ $ 24 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 ROA Debt Free Net Profit 7.80 ROA 3.12 ROE 3.12 Debt Spree Net Profit -12.00 ROE 12.00 % % 2.60 22.10 8.84 %6 % 6.50 % Good year 19.60 33.15 13.26 %6 de 17.60 %