At what level of profit before interest and taxes will slow, Financial Management

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At what level of profit before interest and taxes will slow

SlowMo and speedy Joe have identical businesses except that slow mo has no debt while speedy joes debt equity ratio is 1. Assume that the interest rate is 10% the tax rate is 40% and both have $1000 in assets.

At what level of profit before interest and taxes will slow mos after tax return on equity be equal to speedy joes after tax return on equity?

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Financial Management: At what level of profit before interest and taxes will slow

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