Question $6$

$(10$ marks $)$

Comrade Bhd is an all$-$equity company. It is contemplating going into debt to pay

dividend to the shareholders.

Required :

Calculate and compare current and proposed EPS, ROA and ROE.

$(3$ marks $)$

What if recession happen in the near future $?$

$(4$ marks $)$

Should the company go for debt financing $?$

$(3$ marks $)$