Business, 29.12.2020 03:00 yoojayypee1236

25. Firms HD and LD are identical except for their level of debt and the interest rates they pay on debt--HD has more debt and pays a higher interest rate on that debt. Based on the data given below, what is the difference between the two firms' ROEs? Applicable to Both Firms Firm HD's Data Firm LD's Data

$200 Debt ratio50% Debt ratio30%

$40 Interest rate12% Interest rate10%

35%

2.18%

2.29%

2.41%

2.54%

2.66%

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25. Firms HD and LD are identical except for their level of debt and the interest rates they pay on...