Company	Apple Inc. ($000)	Facebook Inc. ($000)	Tesla Inc. ($000)
Ordinary Shares	9,000	8,500	8,000
8% Debentures	4,000	3,800	3,500
Total Capital	13,000	12,300	11,500

The return on capital employed was 14% for each firm in 1984, and in 1985 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 1984 and 1985. Assume that all profits are distributed. (b) Discuss the impact of gearing on the companies' profitability and risk.