Question: Just need the return on assets part solved. You are considering a stock investment in one of two firms (NoEquity, Inc. and NoDebt, Inc.), both

Just need the return on assets part solved.
Just need the return on assets part solved. You are considering a

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 $38.6 million and operating income of $23.5miltion. NoEquity, Inc. finances its $70 million in assets with $69 million in debt (on which it pays 10 percent interest annually) and $1 million in equity. NoDebt. Inc, finances its $70 million in assets with no debt and $70 mation in equity. Both firms pay a tax rate of 21 percent on their taxable income. Caiculate the net income and retum on assets-funders' investments - for the two firms. (Enter your dollor answers in millions of dollars. Round "Net income" answers to 3 decimal ploces and "Return on assets" answers to 2 decimal places.)

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