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Las Cruces Health Plans currently uses zero-debt financing. Its operating income learnings before interest and taxes, or EBM is $1.5 million, and it pays taxes

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Las Cruces Health Plans currently uses zero-debt financing. Its operating income learnings before interest and taxes, or EBM is $1.5 million, and it pays taxes at a 30 percent rate. It has $8 million in assets and because it is all-equity financed, $8 million in equity. Suppose the form is considering replacing half of its equity financing with debt financing bearing an interest rate of 9 percent A t pointsWhat impact would the new capital structure have on the firm's net income, total dollar return to investors, and return on equity (ROE? You need to explain the impact to receive full credit. B. (6.5 points) Repeat the analysis required for part a but now assume that Las Cruces Health Plans is a not-for-profit corporation and pays no taxes. Compare the results with those obtained in parta. Please note that you need to show how you worked out your answers to receive full credit les formulas used to work out answers, etc). If you simply provide only answers and even when all those answers are correct, only 20% of the full credit may be given ***If you would like to use screenshots to answer your questions, please make sure you provide me with any eviderice regarding how the answers were worked out in writing when the screenshots do not show how you worked out the answers

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