1. Suppose Extron Company has invested in a project, which requires an initial investment of $250 million and is expected to generate $300 million in one year. If the company uses no leverage, what is expected return in percentage to equity holders?

2. Suppose Extron Company has invested in a project, which requires an initial investment of $250 million and is expected to generate $300 million in one year. If the company borrows $100 million at 5% to make the investment, what is expected return in percentage to equity holders?

3. Suppose Extron Company has invested in a project, which requires an initial investment of $250 million and is expected to generate $300 million in one year. How much leverage does the company need to use if it can borrow at 5% to generate an expected return of 35% for the equity holders? Report the required debt level in million dollars.