One company is comparing between two financing alternatives. Given that the company's assets are $100,000$ and the two alternatives are:

First Alternative: Relying entirely on equity funds.

Second Alternative: Relying on loans for $40\%$ at an interest rate of $8\%,$ alongside equity funds.

If the operating profit $($earnings before interest and taxes $-$ EBIT$)$ is $30,000$ and the tax rate is $50\%.$

$-$ For the first alternative:

Basic Earning Power $($BEP$)/$Return on Equity $($ROE$)/$Interest Coverage Ratio $($TIE$)$

$($a$)30\%/15\%/\backslash$infty $($b$)30\%/22\mathrm{.}4\%/9\mathrm{.}4$ times $($c$)15\%/15\%/8$ times

$-$ For the second alternative:

Basic Earning Power $($BEP$)/$Return on Equity $($ROE$)/$Interest Coverage Ratio $($TIE$)$

$($a$)30\%/15\%/\backslash$infty $($b$)30\%/22\mathrm{.}3\%/9\mathrm{.}4$ times $($c$)15\%/15\%/8$ times

To determine the best alternative:

$($a$)$ First: Non$-$use of financial leverage

$($b$)$ Second: Use of financial leverage

$($c$)$ Need more information