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if you held shares in this company, explain why you would or would not wany to move to the proposed situation Particulars Assets (Debt +

if you held shares in this company, explain why you would or would not wany to move to the proposed situation
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Particulars Assets (Debt + Equity) Debt Equity Total Current 30000 0 30000 30000 Prposed 30000 6000 24000 30000 Interest Rate Share Price No. of shares 5% 6 5000 5% 6 4000 Return on assets (EBIT / Assets) *100 EBIT Interest charged (Debt * Interest Rate) 13.333 4000 0 4000 13.333 13.333 4000 300 3700 15.417 EAT Return on Equity (EAT /Equity) * 100

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