Jamuna Textiles and Surma Fabrics are two rivals in the manufacturers of clothes. Some data from the financial statements are given below of the two companies-

Items	Jamuna (Taka)	Surma (Taka)
Current Assets	65,00000	50,00000
Total assets	1,00,00000	1,00,00000
Total Equity (all common)	90,00000	50,00000
Total Debt	10,00000	50,00000
Annual Interest	1,00000	5,00000
Total Sales	2,50,00000	2,50,00000
EBIT	62,50000	62,50000
Net Income	36,90,000	3,450000

1. In which way the large debt of Surma Fabrics made it more profitable than Jamuna? Is there any risk to the shareholders of Surma for having more debt? [10 Marks]