Homework The management board of a company is considering a business venture worth USD 50,000,000. According to plans, the investment could bring USD 70,000,000 in net sales revenue. It is estimated that the operating costs will make up 80% of the sales revenue. The rate of tax levied on the profit will be 19%. The company currently holds equity (retained earnings) of USD 30,000,000. The management board is considering three different scenarios to raise the remaining capital for the business venture: 1. Issuing new shares only increasing equity), 2. Taking out a loan at 10% interest per annum for the full amount of the capital shortage, 3. Taking out a loan at 10% interest per annum for 40% of the capital shortage, plus issuing bonds at 6% interest per annum for 20% of the capital shortage, plus issuing shares for the remaining amount of the shortage Instructions: 1. Identify the best financing option by using the financial leverage formula (choose the right financing option for the business venture). 2. After you choose the financing option, calculate the change of return on equity (AROE) that can be generated by using debt, and the threshold EBIT