13. Archimedes Corporation is considering two different capital structures. In the first, they use all equity to finance the company. In the second, they use 50% debt and 50% equity to finance the company. Suppose that they need $2 million in total financing. The debt financing would carry a 7% interest cost. They project that their EBIT for next year would be $200,000, and their tax rate will be 20%. In the all-equity structure, what would their return on equity (ROE) be? a. b. In the 50/50 structure, what would their ROE be? c. The 50/50 structure is an example of using debt to create leverage. 14. As an investor, what are the key distinctions between debt investments and equity investments? How might your objectives for each differ? 15. What is the relationship between risk and required rate of return for an investment