Fill in the table using the followirfg information.

Assets required for operation: $$3,200$

Case $A-$firm uses only equity financing

Case B$-$firm uses $30\%$ debt with a $10\%$ interest rate and $70\%$ equity

Case C$-$firm 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.

Debt outstanding

Stockholders' equity

Earnings before interest and taxes

Interest expense

Earnings before taxes

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

Net earnings

Return on stockholders' equity

A

B

C

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 as the amount of debt increases.