Analyze ABI's return on equity $($ROE$)$ and times interest earned $($TIE$).$ That is$,$ construct partial income statements for each financing alternative at each EBIT level. $($Hint: Use Table $1).$

TAnalyze ABI's return on equity $($ROE$)$ and times interest earned $($TIE$).$ That is$,$ construct partial income statements for each financing alternative at each EBIT level. $($Hint: Use Table $1).$

Table $1$

Analysis of ROE, TIE, EPS,PO$,$ and WACC $($Totals in Thousands$)$

All Equity $50\%$ Debt

Probability $0\mathrm{.}500\mathrm{.}250\mathrm{.}250\mathrm{.}50$

EBIT $$20,000$ $ $$60,000$ $$20,000$ $ $$60,000$

Interest $0010,500$

EBT $ $$40,000$ $$60,000$ $$9,500$ $$29,500$ $

Taxes $8,000$ $$24,0003,800$ $$19,800$

Net Income $ $$24,000$ $ $ $$17,700$ $

ROE $8\mathrm{.}00\%\%24\mathrm{.}00\%\%23\mathrm{.}60\%\%$

TIE n$/$a n$/$a n$/$a $1\mathrm{.}95\mathrm{.}71$

E$($ROE$)\%23\mathrm{.}60\%$

Std dev ROE $5\mathrm{.}70\%\%$

CV $0\mathrm{.}35$able $1$

Analysis of ROE, TIE, EPS,PO$,$ and WACC $($Totals in Thousands$)$