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ABC health currently uses zero debt financing. Its operating profit is $2 million and its tax rale is 30%. If it has $10 million in

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ABC health currently uses zero debt financing. Its operating profit is $2 million and its tax rale is 30%. If it has $10 million in assets which are financed entirely by equity. Suppose the form is considering replacing half if its equity financing with debt financing that bears an interest rate of 10%. a. What is the impact of the new capital structure on the firm's profit, total dollar return to investors and the return on equity? Show both cases with all equity and financing and half equity financing. Consider the following net cash flows

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