Considering the following financial information for AtlasAwesome Manufacturing, Inc. and Delilah Superior Manufacturing Inc.Both companies are in the same industry and have identicaloperating income of $8.4 million. Atlas finances its $15 million inassets with $2 million debt ( on which it pays 9 percent interest)and 13 million in equity. Delilah finances its $15 million inassets with $12 million in debt ( on which it pays 8 percentinterest). Both companies pay 32 percent tax on their taxableincome.
Calculate the following:
A. Each firms net income
B. The income each firm has available to pay its debt holdersand stock holders (the firms asset funders)
C. The returns available to the asset funders on theirinvestment in each company (the return on asset-fundersinvestment)
D. Which company offers a higher return on investment to itsasset funders? Explain why this company is able to offer a higherrate of return on investment to its asset funders.
Please show all calculations in digital typed format.Please don't use hand writing.
Also please answer all A,B,C,D. Thank you somuch.
