An entrepreneur is planning to establish a company with $50 million in assets and is investigating three possible capital structures for the company: (i) no debt; (i) 20 per cent debt; and (i) 50 per cent debt. The interest rate on the debt is 10 per cent per annum. The entrepreneur believes that the annual earnings before interest and tax will be $2.5 million in a poor year, $5 million in an average year and $10 million in a good year a) Complete the table below. b) Plot the results for the three capital structures together on the one diagram, with return on assets (RoA) on the horizontal axis and return on equity (RoE) on the vertical axis. Comment apital structure (ii) Capital structure (i) Capital structure ( Assets Debt/ Assets Debt ($) Equity ($) EBIT ()$2.5m $5.0m $10.0m $2.5m $5.0m $10.0m $2.5m $5.0m $10.0m Interest ($) Net income RoA (%)(a) RoE (%)(b) lol RoA (Return on Assets) -EBIT/Assets (where EBIT means earnings before interest and tax). b) RoE (Return on Equity) Net income/Equity