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Fill in the table using the following information. Assets required for operation: $4,000 Case Afirm uses only equity financing Case Bfirm uses 30% debt with

Fill in the table using the following information. Assets required for operation: $4,000 Case Afirm uses only equity financing Case Bfirm uses 30% debt with a 10% interest rate and 70% equity Case Cfirm uses 50% debt with a 12% interest rate and 50% equity If your answer is zero, enter "0". Round your answers for monetary values to the nearest cent. Round your answers for percentage values to one decimal place.

A B C
Debt outstanding $ $ $
Stockholders' equity $ $ $
Earnings before interest and taxes $720.00 $720.00 $720.00
Interest expense $ $ $
Earnings before taxes $ $ $
Taxes (40% of earnings) $ $ $
Net earnings $ $ $
Return on stockholders equity % % %

What happens to the rate of return on the stockholders' investment as the amount of debt increases?

The rate of return on the stockholders' investment -Select-increasesdecreasesdoes not changeItem 22 as the amount of debt increases.

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