Bricker Graphics is a privately held company specializing in package labels. Representat have just returned from Switzerland, where a Swiss firm is manufacturing a custom-ma color labeling machine. Confidence is high that the new machine will help rescue Bricke declining profitably. Bricker's Chief operating officer, Don Benson, has been under fire f the company's performance goals of achieving a rate of return on assets of at least 12% The afternoon of his return to Switzerland, Benson called Susan Sharp into his office. Su Controller. Benson: I wish you had been able to go. We have some accounting issues to conside Sharp: I wish I'd been there too, I understand the food was marvelous. What are th accounting issues? Benson: They discussed accepting our notes at the going rate for a face amount of also discussed financing with stock. Sharp: I thought we agreed; debt is the way to go for us for now. Benson: Yes, but I've been thinking. We can issue shares for a total of $10 million. T custom made and doesn't have a quoted selling price, but the domestic labelers we co made and doesn't have a quoted selling price, but the domestic labelers we considered $10 million. It sure would help our rate of return if we keep the asset base as low as po Required: 1. How will Benson's plan affect the return measure? What accounting issue is im 2. Is the proposal ethical? 3. Who would be affected if the proposal is implemented