Company	Apple Inc. ($000)	Facebook Inc. ($000)	Tesla Inc. ($000)
Ordinary Shares	5,000	4,500	4,000
8% Debentures	2,000	1,800	1,500
Total Capital	7,000	6,300	5,500

The return on capital employed was 14% for each firm in 1999, and in 2000 it was 9%. Corporation tax in both years was assumed to be 45%, and debenture interest is an allowable expense against corporation tax.

(a) Calculate the percentage return on the shareholders' capital for each company for 1999 and 2000. Assume that all profits are distributed. (b) Discuss the impact of gearing on the companies' profitability and risk.