Company	Apple Inc. ($000)	Facebook Inc. ($000)	Tesla Inc. ($000)
Ordinary Shares	8,000	7,500	7,000
8% Debentures	3,500	3,200	2,800
Total Capital	11,500	10,700	9,800

The return on capital employed was 14% for each firm in 1989, and in 1990 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 1989 and 1990. Assume that all profits are distributed. (b) Discuss the impact of gearing on the companies' profitability and risk.