Business
Business, 06.07.2019 03:30, justarando

Firm's hl and ll are identical except for their leverage ratios and the interest rates they pay on debt. each has $20 million in assets, $4 million of ebit, and is in the 40 percent federal-plus-state tax bracket. firm hl, however, has debt ratio (d/a) of 50 percent and pays 12 percent interest on its debt, whereas ll has a 30 percent debt ratio and pays only 10 percent interest on its debt. calculate the rate of return on equity (roe) for hl

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