Question: can anyone show me how to do it with calculation A B C D E F G H K L 1 2 3 4. Firms
can anyone show me how to do it with calculation
A B C D E F G H K L 1 2 3 4. Firms HD and LD are identical except for their use of debt and the interest rates they pay-HD has more debt and thus must pay a higher interest rate. Fill in Firm HD and Firm LD data. Based on the data given below, calculate ROEHD and ROELD- 5 6. 7 Firm LD's Data 8 9 Applicable to Both Firms Firm HD's Data Capital $3,000,000 wa EBIT $500,000 Int. rate Tax rate 35% 70% Wo 12% Int. rate 20% 10% 10 11 12 13 14 Firm LD's Data 15 16 Applicable to Both Firms Firm HD's Data Capital $3,000,000 debt weight EBIT $500,000 Int. rate Tax rate 35% debt capital debt weight Int. rate debt capital 17 18 19 EBIT EBIT Interest 20 Interest 21 EBT EBT NI NI 22 23 24 25 Equity ROE Equity ROE 26 27 28 29
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