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Do this in excel P 1 3 - 1 1 ROE and recapitalization At the beginning of the year you invest $ 4 0 ,

Do this in excel
P13-11 ROE and recapitalization At the beginning of the year you invest $40,000 of your own money plus $40,000 that you borrowed at 6% interest to purchase $80,000 worth of GoFast stock, which earns a return of 13%. You pay taxes on the money you make on the stock at the rate of 28%, but you can deduct the interest you pay on your loan from your stock income before calculating your tax bill.
a. Calculate your net after-tax return on these positions.
b. What would your after-tax return have been if you had never borrowed money and had invested just $40,000 in GoFast stock?
Make this and answer it in an excel worksheet
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