Fill in the table using the following information.

Assets required for operation: $$4,800$

Case A$-$firm uses only equity financing

Case B$-$firm uses $40\%$ debt with a $10\%$ interest rate and $60\%$ equity

Case C$-$firm uses $50\%$ debt with a $14\%$ interest rate and $50\%$ equity

If the 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.

Debt outstanding

Stockholders' equity

Earnings before interest and taxes

Interest expense

Earnings before taxes

Taxes $(40\%$ of earnings$)$

Net earnings

Return on stockholders' equity

What happens to the return on the stockholders' equity as the amount of debt increases? Why did the rate of interest increases in case C$?$

The return on stockholders' equity as the firm becomes financially leveraged. The rate of interest increase in case $C$ due in the financial risk.