Business, 19.04.2021 15:40 kaitlynhess

Two companies, A and B, both have $1 million in assets, earnings before interest and taxes (EBIT) of $160,000, and the same tax rate. Company A is all equity financed, and Company B is 50% debt financed and 50% equity financed. If Company B's pretax cost of debt is 8%, then Company A will have a ROA that is and a ROE that is than Company B's. a. Option D b. Option B c. Option A d. Option C

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Two companies, A and B, both have $1 million in assets, earnings before interest and taxes (EBIT) of...

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