Mr. Longhorn is a cattle raiser. He buys a calf for 700-TL and spends 1.300-TL for food and health checks per calf. At the end of one year he sells each calf for 3.000-TL. He has 200.000-TL at the beginning of 2016. When he sells the calves he spends the profit for his own purposes. So, at the beginning of 2017 he has 200.000-TL his own money for business. In 2017 Agricultural Bank gives 300.000-TL credit with 25% interest rate to the cattle raisers. Calculate how much he could earn in 2016 with his own money and how much he could earn in 2017 by using financial leverage. What are the risks of using financial leverage? (10 points) Mr. Longhorn is a cattle raiser. He buys a calf for 700-TL and spends 1.300-TL for food and health checks per calf. At the end of one year he sells each calf for 3.000-TL. He has 200.000-TL at the beginning of 2016. When he sells the calves he spends the profit for his own purposes. So, at the beginning of 2017 he has 200.000-TL his own money for business. In 2017 Agricultural Bank gives 300.000-TL credit with 25% interest rate to the cattle raisers. Calculate how much he could earn in 2016 with his own money and how much he could earn in 2017 by using financial leverage. What are the risks of using financial leverage? (10 points)