b) For Scenario B, assume that the firm has total assets of 5 million, financed by 2.5 million of shareholders' equity and 2.5 million of debl Calculate the firm's net income and retum on equity for the coming year assuming that operating income (EBIT) may vary as much as 50% from expectations and complete the missing information in the table below Scenano B EBIT 50% lower than expectations Expected EBIT 1,000,000 EBIT 50% higher than expectations Earnings before interest and tax Interest expense Eamings before taxes Taxes Net income Retum on equity (ROE) b) For Scenario B, assume that the firm has total assets of 5 million, financed by 2.5 million of shareholders' equity and 2.5 million of debt. Calculate the firm's net income and retum on equity for the coming year assuming that operating income (EBIT) may vary as much as 50% from expectations and complete the missing information in the table below. Scenario B Expected EBIT EBIT 50% lower than expectations EBIT 50% higher than expectations 1,000,000 Eamings before interest and tax Interest expense Earnings before taxes Taxes Net income Return on equity (ROE) Assume the following information about the firm Sigma Inc Expected next year's operating income (@ 1,000,000 Interest rate on debt 6% Income tax rate 35% The firm management is evaluating two scenarios