1. (24 points) Root Inc. is a company that produces construction material by using its assets at full capacity. According to the end of 2019 financial statements, company has $5,000,000 in assets that are financed 50% by equity and 50% by debt. Its Equity is $1,000,000. Assume that company does not have any spontaneous liabilities and it does not have any scheduled long term principal debt payments until 5 years from now. Assume Root had an annual profit of $800,000 in 2019 and does not have any depreciation. Requirement: Company is not planning on selling or buying back stocks or distributing dividends. a) If Root maintains a growth rate of 0% per year, what would be the debt to equity ratio in the coming five years? b) Instead, if Root grows at the the internal growth rate, what would be the debt to equity ratio in the coming five years? c) Yet, as another alternative, if the company wants to keep its D/E ratio constant, what are the options open to company given the above requirement is satisfied