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Munn Industrial Components currently finances its operations with 100% equity, but is considering changing its target capital structure to 70% equity and 30% debt. Munn

Munn Industrial Components currently finances its operations with 100% equity, but is considering changing its target capital structure to 70% equity and 30% debt. Munn has a large asset base, a 20% operating profit margin, and the average interest rate on debt is expected to be 6.0%. If Munn makes the change to its capital structure and EBIT is unchanged, what is most likely the impact on Munn's net income and return on equity (ROE) respectively? O Impact on Net Income: No Change, Impact on Return on Equity: Increase Impact on Net Income: Decrease, Impact on Return on Equity: Increase Impact on Net Income: Decrease, Impact on Return on Equity: Decrease

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