please answer all question 4

Thank you

Question 4 of 4 > - / 1 III Totally Awesome is a major chain of ladies fashion stores. They are considerine expanding the tsiness by setting up another outlet in a new shoppine centre. The estimated cost of this venture is $4,862,000. The expected profit (before interest and taxes) from this additional outlet is 5101R 200 per year. Totally Awesome has 205.900 common shares with total shareholders' equity of $4.118.000 The board is considering two alternatives to finance the expansion: 1 2 Issue 187.000 common shares for $26 per share on Issue $4862.000 of 5% bonds payable Totally Awesome is subject to a 30% tax rate Complete the following table to illustrate the ffects on earnine per share and return on equity for the two alteratives (Roord Earning per share and Return on oulty to 2 decimales. 52.75 or 52.75%) Issues Equity Issues Bonds Profit before interest and income Letest expense Profte incomat Income tax expense Profit NUTO shares Shareholdes outy 5 Earns or share TUY Question Part Score 10.6 Below are listed some advantages of either debt financing or equity financing For each advantage Identity fit relates to det financing or equity financing by selecting the appropriate word in the box to the right of the statement Debtor Equity Financing Creates the opportunity for financialleveragine! Earning per share is often higher Interest expense is deductible for income tax purposes No mandatory interest payments Profitishich Representation Return to be Shareholders cantha The result Textbook