5. Problem 2005 eBook Problem 20-05 You are given the following information concerning a firm Assets required for operation: $5,400,000 Vere: $8,700,000 Operating expenses $8,050,000 Income tax rate: 40% Management faces three possible combinations of financing 1. 100 quity financing 2. 25 debt financing with a Interest rate 3. 50 detit financing with interest rate What is the income forwach combination of debt and equity financing Round your answers to the nearest dollar 2 3 Net income t. What is the money for each combination of debt and equity financing? Round your answers to one decimal place 1 3 Return on equity 6. If the interest rate had been 16 percent tead of percent, what would be the return on equity for each combination of debt and equity ? Round your answers to one decimal place d what is the nation of the ancial leverage when interest rates change? The use of financial serwis.lt the return to the common stockholders in the rate of interest is low. If the rate ofrecer adjusting for tw) the rain same tood underm to the common stod older Isely to DY IN officiallverage acer