A B C D E F

Net Income $123,48766,543817,65482,567441,414719,212$

Equity $1,200,000750,0006,700,000713,45013,450,00013,456,700$

Interest Rate $16\mathrm{.}0\%13\mathrm{.}0\%3\mathrm{.}0\%14\mathrm{.}0\%7\mathrm{.}0\%4\mathrm{.}7\%$

Tax Rate $30\%30\%30\%30\%30\%30\%$

You are an investment banker and are looking at six companies that you maintain relationships with at Chase Bank. Your boss asks you to look at the companies and indicate which one$($s$)$ may utilize debt to increase ROE. Remember investment bank make money in the debt capital markets by being a book runner on bond and debt deals. So this is very important $-$ as soon as you are done your boss will call the companies to see if he can get them to issue debt to increase their ROE and help ensure he brings in new business so he gets a bonus.

Please choose the company or companies that can use debt to increase ROE.

Co$.$ A

Co$.$ B

Co$.$ C

Co$.$ D

Co$.$ E

Co$.$ F