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*PLEASE ANSWER STEP BY STEP WITH EXPLANATIONS, PLEASE, would really be helpful, please motivate with text to the calculations* A limited company plans to make

*PLEASE ANSWER STEP BY STEP WITH EXPLANATIONS, PLEASE, would really be helpful, please motivate with text to the calculations* A limited company plans to make an investment of 100 million SEK and is considering two alternative ways to finance the investment: Option 1: issue bonds with a maturity of 5 years Option 2: issue shares Below is a summary of the company's balance sheet before the investment and its financing: Balance sheet (unit SEK million): Assets 400 Equity 120 Long-term liabilities 250 Current liabilities 30 Indicate how the equity / assets ratio (solidity) and the debt / equity ratio are affected by the two financing alternatives. The answer must include a calculation of the key figures both before and after the investment has been made for both alternatives. All calculations must be reported.

Formulas to solidity and debt/ equity ratio:

debt / equity ratio = liabilities / equity 

solidity (equity / assets ratio) = equity / total capital (total capital = total assets) (solidity is stated in percent)

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