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Mark 4. (20 points) Given the various debt ratios, fill in the table and determine the firm's earnings and return on equity. The firm's earnings
Mark 4. (20 points) Given the various debt ratios, fill in the table and determine the firm's earnings and return on equity. The firm's earnings before interest and taxes(EBIT) are $10,000 and total assets are $100,000. Tax rate is 35 percent, and the rate of interest on debt is 6 percent, What impact did the use of additional debt financing have on the return on equity? Mark 4. (20 points) Given the various debt ratios, fill in the table and determine the firm's earnings and return on equity. The firm's earnings before interest and taxes(EBIT) are $10,000 and total assets are $100,000. Tax rate is 35 percent, and the rate of interest on debt is 6 percent, What impact did the use of additional debt financing have on the return on equity
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