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2) All is as in problem1. Now suppose ROA next year turns out to be 10%. Fill in the BLANKS. Package1 Package2 Package3 Assets (mill)

2) All is as in problem1. Now suppose ROA next year turns out to be 10%. Fill in the BLANKS.

Package1 Package2 Package3
Assets (mill) $40 $40 $40
Debt $10
Equity $20
Number of shares (mill)
Debt/Equity Ratio 33%
Package1 Package2 Package3
Operating Earn. (mill) $4
Interest expense (mill) $2
Earnings for owners (mill) $4
Number of shares (mill) 2 1,5 1
Earnings per share $2 $1,33 $0

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