4. Prepare HCRC's financial statements, comparing its current all-equity financing approach to a possible 60% debt financing approach. Assume an interest rate of 8% and a tax rate of 33% for your calculations. Create: a) the balance sheet, b) the income statement and c) calculate ROE. d) Which financing option has the best ROE? (20 points) 4. Prepare HCRC's financial statements, comparing its current all-equity financing approach to a possible 60% debt financing approach. Assume an interest rate of 8% and a tax rate of 33% for your calculations. Create: a) the balance sheet, b) the income statement and c) calculate ROE. d) Which financing option has the best ROE? (20 points)