Sinclair Manufacturing and Boswell Brothers Inc. are both involved in the production of tile for the home-building industry. Their financial information is as follows: Capital Structure Sinclair (high financial leverage) Boswell (low financial leverage) Debt @ 12% $600,000 0 Common stock, $10 per share 400,000 1,000,000 $ 1,000,000 $ 1,000,000 Common shares 40,000 100,000 Operating Plan Sinclair