Firms HD and LD are identical except for their level of debt and the interest rates they pay on debt¾HD 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?
A) 2.18%
B) 2.29%
C) 2.41%
D) 2.54%
E) 2.66%
Correct Answer:
Verified
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