Firm A and Firm B plan to raise $1 million to finance identical projects. Firm A finances the project with 100 percent equity, whereas firm B uses a 50-50 mix of debt and equity. The interest rate on...

Firm A and Firm B plan to raise $1 million to finance identical projects. Firm A finances the project with 100 percent equity, whereas firm B uses a 50-50 mix of debt and equity. The interest rate on the debt equals 7 percent. At what rate of return on the investment (i.e., assets) will the rate of return on equity be the same for Firms A and B?