$($a$)$ Debt is $20\%$ of assets for an organization. Total assets are $$10,000.$ The tax rate is $40\%.$ The interest rate is $10\%.$ EBIT profit is $$1000.$ What is the after taxes and interest profit? What is the ROE? Profit ROE

$($b$)$ If in $1($a$)$ debt is increased to $50\%$ of assets, what will be the after taxes and interest profit and the ROE?

Profit

ROE