Firms HD and LD are identical except for their use of debt and the interest rates they pay⎯HD has more debt and thus must pay a higher interest rate.Based on the data given below,how much higher or lower will HD's ROE be versus that of LD,i.e.,what is ROE_HD − ROE_LD? A)5.41% B)5.69% C)5.99% D)6.29% E)6.61%

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The Answer of Firms HD and LD are identical except for their use of debt and the interest rates they pay⎯HD has more debt and thus must pay a higher interest rate.Based on the data given below,how much higher or lower will HD's ROE be versus that of LD,i.e.,what is ROE_HD − ROE_LD? A)5.41% B)5.69% C)5.99% D)6.29% E)6.61%

Firms HD and LD Are Identical Except for Their Use