16. If a company has a total asset of 125,000,000 MXN initially financed through equity capital, a return on equity of 12.5% with the initial structure, with an interest rate of 12.5% and a return on assets of 22%. What happens to return on equity if half of a company's shares are repurchased by issuing debt? ANSWER: a)How much would be the earnings after interest?

b)how much equity should be repurchased to triple the Initial ROE?