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Fill in the table using the following information. Assets required for operation: $4,000 Case A-firm uses only equity financing Case B-firm uses 40% debt with
Fill in the table using the following information. Assets required for operation: $4,000 Case A-firm uses only equity financing Case B-firm uses 40% debt with an 8% interest rate and 60% equity Case C-firm uses 50% debt with a 10% interest rate and 50% equity If your answer is zero, enter "o". Round your answers for monetary values to the nearest cent. Round your answers for percentage values to one decimal place B Debt outstanding $ $ $ Stockholders equity $ $ $ Earnings before interest and taxes $960.00 $960.00 $960.00 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- as the amount of debt increases
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