HW Chapter 2A 07 Problem 2-21 Debt versus Equity Financing (LG2-1) 1.25 points 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 $39.3 million and operating income of $16.5 million NoEquity, Inc., finances its 575 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.) ON Prot rence $ Net Income Return on assets NoEquity 7.100 million 0.58 5 NoDebt 13.036 milion 17:38