SpringTime Ltd is considering the following two alternatives for financing extensions. 1. Issue 66,000 shares at $21 per share. (Cash dividends have not been paid; nor is the payment of any cash dividend contemplated.) Issue 11%, 10-year debentures at face value for $1,386,000. (Assume that 11% is also the market rate for similar securities.) 2. It is estimated that the company will earn $489,000 before interest and taxes as a result of the extension. The company has an estimated tax rate of 30% and has equity of $1,800,000 prior to the new financing. Required Determine the effect on profit and return on ordinary shareholders' equity for: (a) (b) issuing shares issuing debentures. (Round return on equity to 2 decimal places, e.g. 15.27%.) Spring Time Ltd (a) Issue shares (b) Issue debentures Profit Return on equity % % Click if you would like to Show Work for this question: Open Show Work