Question: Problem III Firms HD and LD are identical except for their level of debt and the interest rate the pay Based on the data below,

Problem III Firms HD and LD are identical except for their

Problem III Firms HD and LD are identical except for their level of debt and the interest rate the pay Based on the data below, what is the difference between the two limn ROES? Applicable to both firms Firm HS's Data Firm LD's data Assets 200 Debt Ratio 50% Debt Ratio 30% EBIT 40 Interest rate 12% Interest rate 10% Tax rate 35%

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