You are considering a stock investment in one of two firms (NoEquity, Incorporated, and NoDebt,...
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Accounting
You are considering a stock investment in one of two firms NoEquity Incorporated, and NoDebt, Incorporated both of which operate in the same industry and have identical EBITDA of million and operating income of million. NoEquity, Incorporated, finances its million in assets with million in debt on which it pays percent interest annually and million in equity. NoDebt, Incorporated, finances its million in assets with no debt and million in equity. Both firms pay a tax rate of percent on their taxable income. Calculate the net income and return on assetsfunders' investmentsfor the two firms. Note: Enter your dollar answers in millions of dollars. Round "Net income" answers to decimal places and "Return on assets" answers to decimal places. NoEquityNet income,,millionReturn on assetfunders' investment,,
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