1. Where did the $15,000 come from?

2. How did you come into the conclusion that ~30% of the property, plant and equipment was financed through long term debt?

3. How does the company pay higher dividends and improvise ROE from the leverage effect?

Major capital investment of $14550 in Year 2 was financed through additional debt of $15000 and ~30% of Property, Plant and Equipment is financed using long-term debt. Because of leverage effect, it allows the company to pay higher dividends and improvise financial ratios el ROE 1 $93,450 2 $107,000 3 $112,500 4 $115,000 5 $118,000 $25,000 $40,000 $38,000 $36,000 $34,000 Net property, plant and equipment Long term debt & finance lease Interest Expense Total equity $2,000 $3,200 $3,040 $2,880 $2,720 $71,903 $77,536 $83,222 $89,990 $98,404