DIATE 6. Arrow Technology, Inc. (ATI) has total assets of $10 million and expected operating income (EBIT) of $2.5 million. If ATI uses debt in its capital structure, the cost of this debt will be 12 percent per annum. a. Complete the following table: Leverage Ratio (Debt/Total Assets) 0% 25% 50% Total assets Debt (at 12% interest) Equity Total liabilities and equity Expected operating income (EBIT) Less: Interest (at 12%) Earnings before tax Less Income tax at 40% Earnings after tax Return on equity Efect of a 20% Decrease in EBIT to $2,000,000 Expected operating inconie (Eem Less Interest (at 12% Earnings before tax Less Income tax at 40% Earnings after tax Return on equity Effect of a 20% Increase in EBIT to $3,000,000 Expected operating income (EBIT) Less Interest (at 12%)