1	Balance Sheets
			Stock &	Stock &
		Stock	Debt	Debt
	Total assets	12,000,000	12,000,000	12,000,000
	Debt		6,000,000	6,000,000
	Common stock	12,000,000	6,000,000	6,000,000
	Total liabilities & equity	12,000,000	12,000,000	12,000,000
	Assume interest rate of:		9%	12%
	Complete the following income statements.
	Income Statements
	EBIT	2,500,000	2,500,000	2,500,000
	Interest expense
	Taxable income (EBT)
	Income tax (40%)
	Net income
	Total dollars to investors
	Return on Equity