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ROA 1296 405 JD Smillim Tax rate Total assets (include only JD4 million financed by debts (1295) and JD4 million owners' equity Management of Petra

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ROA 1296 405 JD Smillim Tax rate Total assets (include only JD4 million financed by debts (1295) and JD4 million owners' equity Management of Petra" Co wants to expand its operations with additional JD8 million. It has two alternatives to finance this expansion *First alternative: ss JD3 million bonds (12) and JD5 million by issue ordinary shares Secondamnative in JD2 million bonds (129) and Jillion by Issue ordinary shares Assume ROA remains unchanged. Then answer the following question (12) 1. If first alternative were used, ROCE will be A 16.809 1 14.29 C 15.7396 D. None of above is correct 2. Your advice for management of Petra Co, is A. Accept first alternative. B. Accept second alternative C. Reect the two alternatives, D. Accept the two alternatives

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