Question 14 A company is expected to generate $175,000 in earnings next period and requires a 20% return on equity capital. Using the assumptions of the price-earnings ratio, what would be the company's value at the beginning of next period? Select one O A. $781,250 B. $1,250,000 c. $2,000,000 O D. $875,000 Question 15 Which of the following ratios give a perspective on risk in the capital structure? Select one A. Book value per share B. Price/earnings ratio Oc. Degree of financial leverage OD. Dividend yield