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1 . Consider a new for - profit walk - in clinic that needs $ 9 0 0 . 0 0 0 in assets to

1. Consider a new for-profit walk-in clinic that needs $900.000 in assets to begin operations.
2. The business is expected to produce $250,000 in operating income.
3. The clinic has only two capital structure alternatives:
- No debt financing (all equity)
-450,000 of 8% debt (50/5o mix)
4. Fill out the following table by calculating interest expense, taxable income, taxes, net profit, and ROE.\table[[Age of Account (Days),Value of Account,% of Total Value],[Net revenue,$450,000,$450,000],[Operating costs,$200,000,],[Operating income,,$200,000],[Interest expense,,],[Taxable income,,],[Taxes (40%),,],[Net profit,,],[ROE,,]]
5. Show which one shows higher efficiency in generating profits.
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