The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions. Frenza Bond Amortization Carrying Value Unamortized Discount $100,000 $80,000 Erenza: January 1. Year 1 Carrying Value: $88,000 $60,000 $40,000 $20,000 January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31, Year 1 Year 2 Year 3 Cash & Inventory for Competing Companies Frenza Lika Nelo Market Rate for Company Bonds 109 Frenza $50,000 The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions. Frenza Bond Amortization Carrying Value $100,000 $60,000 $60,000 $40,000 $20,000 so January 1, Y Frana: January 1. Years Unamortized Discount: $12,000 June 30, Year 2 December 31, June 30, Year 3 December 31, Year 2 Years Cash & Inventory for Competing Companies Frenza Lika Nelo Market Rate for Company Bonds 10% Franza $50,000 The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8% She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions Carrying Frenza Bond Amortization nanoted Discount $100,000 $80,000 $60,000 $40,000 Erenza: June 30. Year 1 Carrying Value: $90,000 $20,000 January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31 Year 1 Year 2 Year 3 Cash & Inventory for Competing Companies Frenza Lika Nelo Market Rate for Company Bonds 10% Frenza $50,000 The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions Carrying Value Frenza Bond Amortization $100,000 $80,000 $60,000 $40,000 $20,000 January 1, Year June 30, Frents June 30 Year 2 Unamortized Discount: $10,000 December 31, June 30, Year 3 December Year 2 Cash & Inventory for Competing Companies Frenza Lika Nelo Market Rate for Company Bonds 1010 $50,000 The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8% She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions. Carrying Value Frenza Bond Amortization Umortized Discount $100,000 $80,000 $60,000 $40,000 Frenza: December 31. Year 1 Garrying Value: $92.000 $20,000 January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31 Year 1 Year 2 Cash & Inventory for Competing Companies Frenza L ika Nelo Market Rate for Company Bonds 104 $50,000 The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions Frenza Bond Amortization $100,000 $80,000 $60,000 $40,000 $20,000 January 1 Year June 30, Year 1 Decen Frenza: December 31. Year Yo Unamortized Discount: $8,000 31June 30, Year 3 December 31 Year 3 2 Cash & Inventory for Competing Companies Frenza Lika Nelo Market Rate for Company Bonds 1096 $50,000 The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions Carrying Value Unamortized Discount $100,000 Frenza Bond Amortization $80,000 $60,000 Frenza: June 30, Year 2 Carrying Value: $94,000 $40,000 $20,000 January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31, Year 1 Year 3 Cash & Inventory for Competing Companies Frenza L ika Nelo Market Rate for Company Bonds 10% $50,000 rowth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for er business decisions. Carrying Value Frenza Bond Amortization Unamortized Discount $100,000 $80,000 $60,000 $40,000 $20,000 January 1 Year June 30, Year 1 December 31, June 3 Year 1 Years foar 3 December 31, Frenza: June 39. Year 2 Unamortized Discount: $6,000 Market Rate for Company Bonds Cash & Inventory for Competing Companies Frenza L ika Nelo 1046 $50,000 $40,000 The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions Frenza Bond Amortization Unamortized Discount $100,000 $80,000 $60,000 $40,000 Eren Desember 31. Year 2 Carrying Value: $96.000 $20,000 January 1 Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31, Year 2 Year 3 Market Rate for Company Bonds Cash & Inventory for Competing Companies Frenza L ika Nelo 10% $50,000 $40 000 rowth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for er business decisions. Carrying Value Frenza Bond Amortization Unamortized Discount $100,000 $80,000 $60,000 $40,000 $20,000 January 1 Year June 30, Year 1 December 31, June 3 Year 1 Years foar 3 December 31, Frenza: June 39. Year 2 Unamortized Discount: $6,000 Market Rate for Company Bonds Cash & Inventory for Competing Companies Frenza L ika Nelo 1046 $50,000 $40,000 The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8% She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions. bond Amortization Carrying Value W orized Discount $100,000 -- $80,000 $60,000 $40,000 $20,000 January 1 Year June 30, Year 1 December 31, June 30, Year 2 Dech Yes Erenza: December 31. Year 2 Unamortized Discount $4,000 Cash & Inventory for Market kate tor Company Competing Companies Bonds Frenza Lika Nelo 10% Frenza $50,000 $40,000 The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8% She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions. Frenza Bond Amortization $100,000 $80,000 $60,000 $40,000 Erenza: June 30. Year 3 Carrying Value: $98,000 $20,000 January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31, Year 2 Year 3 year Cash & Inventory for Competing Companies Frenza Lika Nelo Market Rate for Company Bonds 10% Frenza $50,000 $40,000 P UNJ UITEI ULULISSUandes as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions Frenza Bond Amortization Carrying Value Unamortized Discount $100,000 $80,000 $60,000 $40,000 $20,000 January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31 Year 1 Year 2 Frenza: June 30, Year 3 Unamortized Discount: $2,000 Cash & Inventory for Market Rate for company Competing Companies Bonds Frenza Lika Nelo 10% Frenza $50,000 $40,000 5 of 10 Next > UUTULIUI TIL SLS US U ASSIST LLUuring and analysis of the corporation's bonds, which have an annual contract rate of 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions. Carrying Valu Unamortired Frenza Bond Amortization $100,000 - $80,000 $60,000 $40,000 $20,000 Frenza: December 31 Year 3 Carrying Value: $100,000 January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31, Year 1 Year 2 Years Market Rate for Company Bonds Cash & Inventory for Competing Companies Frenza Lika Nelo 109 Fre $50,000 $40,000 Ma Cash & Inventory for Competing Companies | Frenza Lika Nelo 1096 896 .... $50,000 Frenza Cash: $55,000 696 $40,000 496 $30,000 296 $20,000 096 $10,000 Tota SO Cash Cash Cash Net Income Inventory Inventory Inventory Total Equity + ableau 1. Based on the current market rates for bonds of Frenza. Nelo, and hichest risk e CASILLE Competing Companies Frenza Lika Nelo 1096 Frenza 896.... 000 696 ........... 000 496 2,000 296 3,000 Frenza Inventory: $30,000 0% 20,000 Total Eq so Fret $100 Cash Cash Cash Net Income Inventory Inventory Inventory Total Equity $400 + ableau Based on the current market rates for bonds of Frenza. Nelo, and Lika w ghest risk level? lf Frenza decided to issue new bonds with a contract rate of 1196. would t n the current market rate for Frenza bonds? Frenzas SHUME Market Ra Cash & Inventory for Competing Companies Frenza | Lika | Nelo 1096 Frenza 896 000 696 000 496 -000 29 ,000 Lika Cash: $32,000 2,000 Total Equity so Frenza Cash Cash Cash Net Income $100,000 Inventory Inventory Inventory Total Equity $400,000 a ased on the current market rates for bonds of Frenza. Nelo, and Lika, which nest risk evel? Frenza decided to issue new bonds with a contract rate of 119, would these the current market rate for Frenza bands? Frenza is planning an $160.000 expansion to launch a new product line. Fren: Marke Cash & Inventory for Competing Companies Frenza Lika Nelo 1096 Frenz 896 $50,000 $40,000 496 $30,000 296 $20,000 096 $10,000 So Total Eq Nelo Cash: $18,000 Fre Net Income $100 Cash Inventory Cash Cash Inventory Inventor Total Equity $400 tableau 1. Based on the current market rates for bonds of Frenza. Nelo, and Lika, w highest risk evel? 2. If Frenza decided to issue new bonds with a contract rate of 11%, would t on the current market rate for Frenza bonds? 3. Frenza is planning an $160.000 expansion to aunch a new product line Marke Cash & Inventory for Competing Companies Frenza | Lika Nelo 1096 Frenza $50,000 $40,000 $30,000 Lika Inventory: $42,000 $20,000 096 $10,000 Total Eq $0 Fre Cash Cash Net Income Inventory Cash _$100 Inventory Inventory Total Equity 5400 + ableau 1. Based on the current market rates for bonds of Frenza, Nelo, and Lika, w highest risk level? 2. If Frenza decided to issue new bonds with a contract rate of 11%. Would on the current market rate for Frenza bonds? 3. Frenza is nlanninn $160 Market F Cash & Inventory for Competing Companies | Frenza | Lika | Nelo 1096 Frenza 896 $50,000 696 $40,000 4% --- $30,000 296 $20,000 096 $10,000 Cash Cash Cash Inventory Inventory Total Equ Frenz Nelo Inventory: $7,000 $100,00 Total Equity $400,00 +able au 1. Based on the current market rates for bonds of Frenza. Nelo, and Lika, whi highest risk evel? 2. If Frenza decided to issue new bonds with a contract rate of 1196. Would the on the current market rate for Frenza bonds? 3. Frenza is planning an sis0.000 expansion to aunch a new product ine Fr Market Rate for compally Bonds 1096 Frenza Market Rate for Bonds: 996 896 Lika 696 496 Nelo 296 -............. 096 Total Equity & Net Income Frenza Lika Nelo Net Income $100,000 $85,000 Inventory Total Equity $400,000 $530,000 $275,000 s of Frenza. Nelo, and Lika, which of the following bonds do lenders be a contract rate of 11%, would these new bonds be sold at a discount or Bonds 1096 Frenza 896 Lika 696 Lika Market Rate for Bonds: 796 496 Nelo 296 *** Total Equity & Net Income Frenza Lika Nelo Net Income $100,000 $190,000 $85,000 Inventory Total Equity $400,000 $530,000 $275,000 of Frenza. Nelo, and Lika, which of the following bonds do lenders believe contract rate of 11%. would these new bonds be sold at a discount or premiu launch a new product ne Frenza currently ears $100.000 in net income. interesanance Frenza has three options: ( do not e 3+ableau of 1. Based on the current market rates for bonds of Frenza, Nelo, and Lika, which of the following bonds do lenders believe has the highest risk level? 2. If Frenza decided to issue new bonds with a contract rate of 11%, would these new bonds be sold at a discount or premium based on the current market rate for Frenza bonds? 3. Frenza is planning an $160,000 expansion to launch a new product line Frenza currently eams $100,000 in net income, and the new product line will yield $50,000 in additional income before any interest expense Frenz has three options: (1) do not expand, (2) expand and issue $160,000 in debt that requires payments of 8% annual interest, or (3) expand and raise $150,000 from equity financing. For each option 1, 2 and 3 compute (al net income and (b) return on equity (Net income + Equity Ignore any income tax effects. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 1. Based on the current market rates for bonds of Frenza, Nelo, and Lika, which of the following bonds do lenders believe has the highest risk level? 2. If Frenza decided to issue new bonds with a contract rate of 11%, would these new bonds be sold at a discount or premium based on the current market rate for Frenza bonds? Show less 1. Which of the following bonds do lenders believe has the highest risk level? 2. Would these new bonds be sold at a discount or premium based on the current market rate for Frenza bonds Reg 3 > on the current market rate for Frenza bonds? 3. Frenza is planning an $160,000 expansion to launch a new product line Frenza currently earns $100,000 in net income, and the new product line will yield $50,000 in additional income before any interest expense. Frenza has three options: (1) do not expand, s payments of 8% annual interest, or (3) expand and raise $160,000 from equity financing. For each option 1, 2, and 3, compute (a) net income and (b) return on equity (Net income + Equity). Ignore any income tax effects Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 1. Based on the current market rates for bonds of Frenza, Nelo, and Lika, which of the following bonds do lenders believe has the highest 2. If Frenza decided to issue new bonds with a contract rate of 11%, would these new bonds be sold at a discount or premium based on th market rate for Frenza bonds? Sho 1. Which of the following bonds do londers believe has the highest risk level? 2. Would these new bonds be sold at a discount or premium based on the current market rate for Frenza bonds? Req 3 > Discount Par value Premium Treasury val UULLE, FL Ceny dls SIUUUUU in het income H new product line will yield $50,000 in additional income before any interest expense. Frenza has three options: (1) do not expand and issue $160,000 in debt that requires payments of 8% annual interest, or (3) expand and raise $160,000 from e financing. For each option 1, 2, and 3. compute (a) net income and (b) return on equity (Net income - Equity) Ignore any inc effects. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Frenza is planning an $160,000 expansion to launch a new product line. Frenza currently earns $100,000 in net income, and the new product line will yield $50,000 in additional income before any interest expense. Frenza has three options: (1) do not expand, (2) expand and issue $160,000 in debt that requires payments of 8% annual interest, or (3) expand and raise $160,000 from equity financing. For each option 1, 2, and 3, compute (a) net income and (b) return on equity (Net income + Equity). Ignore any income tax effects. (Round "Return on equity" to 1 decimal place.) Show less Don't Expand Debt Financing Equity Financing Income before interest expense Interest expense Net income Equity Return on equity % UUTULIUI TIL SLS US U ASSIST LLUuring and analysis of the corporation's bonds, which have an annual contract rate of 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions. Carrying Valu Unamortired Frenza Bond Amortization $100,000 - $80,000 $60,000 $40,000 $20,000 Frenza: December 31 Year 3 Carrying Value: $100,000 January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31, Year 1 Year 2 Years Market Rate for Company Bonds Cash & Inventory for Competing Companies Frenza Lika Nelo 109 Fre $50,000 $40,000 Ma Cash & Inventory for Competing Companies | Frenza Lika Nelo 1096 896 .... $50,000 Frenza Cash: $55,000 696 $40,000 496 $30,000 296 $20,000 096 $10,000 Tota SO Cash Cash Cash Net Income Inventory Inventory Inventory Total Equity + ableau 1. Based on the current market rates for bonds of Frenza. Nelo, and hichest risk e CASILLE Competing Companies Frenza Lika Nelo 1096 Frenza 896.... 000 696 ........... 000 496 2,000 296 3,000 Frenza Inventory: $30,000 0% 20,000 Total Eq so Fret $100 Cash Cash Cash Net Income Inventory Inventory Inventory Total Equity $400 + ableau Based on the current market rates for bonds of Frenza. Nelo, and Lika w ghest risk level? lf Frenza decided to issue new bonds with a contract rate of 1196. would t n the current market rate for Frenza bonds? Frenzas SHUME Market Ra Cash & Inventory for Competing Companies Frenza | Lika | Nelo 1096 Frenza 896 000 696 000 496 -000 29 ,000 Lika Cash: $32,000 2,000 Total Equity so Frenza Cash Cash Cash Net Income $100,000 Inventory Inventory Inventory Total Equity $400,000 a ased on the current market rates for bonds of Frenza. Nelo, and Lika, which nest risk evel? Frenza decided to issue new bonds with a contract rate of 119, would these the current market rate for Frenza bands? Frenza is planning an $160.000 expansion to launch a new product line. Fren: Marke Cash & Inventory for Competing Companies Frenza Lika Nelo 1096 Frenz 896 $50,000 $40,000 496 $30,000 296 $20,000 096 $10,000 So Total Eq Nelo Cash: $18,000 Fre Net Income $100 Cash Inventory Cash Cash Inventory Inventor Total Equity $400 tableau 1. Based on the current market rates for bonds of Frenza. Nelo, and Lika, w highest risk evel? 2. If Frenza decided to issue new bonds with a contract rate of 11%, would t on the current market rate for Frenza bonds? 3. Frenza is planning an $160.000 expansion to aunch a new product line Marke Cash & Inventory for Competing Companies Frenza | Lika Nelo 1096 Frenza $50,000 $40,000 $30,000 Lika Inventory: $42,000 $20,000 096 $10,000 Total Eq $0 Fre Cash Cash Net Income Inventory Cash _$100 Inventory Inventory Total Equity 5400 + ableau 1. Based on the current market rates for bonds of Frenza, Nelo, and Lika, w highest risk level? 2. If Frenza decided to issue new bonds with a contract rate of 11%. Would on the current market rate for Frenza bonds? 3. Frenza is nlanninn $160 Market F Cash & Inventory for Competing Companies | Frenza | Lika | Nelo 1096 Frenza 896 $50,000 696 $40,000 4% --- $30,000 296 $20,000 096 $10,000 Cash Cash Cash Inventory Inventory Total Equ Frenz Nelo Inventory: $7,000 $100,00 Total Equity $400,00 +able au 1. Based on the current market rates for bonds of Frenza. Nelo, and Lika, whi highest risk evel? 2. If Frenza decided to issue new bonds with a contract rate of 1196. Would the on the current market rate for Frenza bonds? 3. Frenza is planning an sis0.000 expansion to aunch a new product ine Fr Market Rate for compally Bonds 1096 Frenza Market Rate for Bonds: 996 896 Lika 696 496 Nelo 296 -............. 096 Total Equity & Net Income Frenza Lika Nelo Net Income $100,000 $85,000 Inventory Total Equity $400,000 $530,000 $275,000 s of Frenza. Nelo, and Lika, which of the following bonds do lenders be a contract rate of 11%, would these new bonds be sold at a discount or Bonds 1096 Frenza 896 Lika 696 Lika Market Rate for Bonds: 796 496 Nelo 296 *** Total Equity & Net Income Frenza Lika Nelo Net Income $100,000 $190,000 $85,000 Inventory Total Equity $400,000 $530,000 $275,000 of Frenza. Nelo, and Lika, which of the following bonds do lenders believe contract rate of 11%. would these new bonds be sold at a discount or premiu launch a new product ne Frenza currently ears $100.000 in net income. interesanance Frenza has three options: ( do not e 3+ableau of 1. Based on the current market rates for bonds of Frenza, Nelo, and Lika, which of the following bonds do lenders believe has the highest risk level? 2. If Frenza decided to issue new bonds with a contract rate of 11%, would these new bonds be sold at a discount or premium based on the current market rate for Frenza bonds? 3. Frenza is planning an $160,000 expansion to launch a new product line Frenza currently eams $100,000 in net income, and the new product line will yield $50,000 in additional income before any interest expense Frenz has three options: (1) do not expand, (2) expand and issue $160,000 in debt that requires payments of 8% annual interest, or (3) expand and raise $150,000 from equity financing. For each option 1, 2 and 3 compute (al net income and (b) return on equity (Net income + Equity Ignore any income tax effects. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 1. Based on the current market rates for bonds of Frenza, Nelo, and Lika, which of the following bonds do lenders believe has the highest risk level? 2. If Frenza decided to issue new bonds with a contract rate of 11%, would these new bonds be sold at a discount or premium based on the current market rate for Frenza bonds? Show less 1. Which of the following bonds do lenders believe has the highest risk level? 2. Would these new bonds be sold at a discount or premium based on the current market rate for Frenza bonds Reg 3 > on the current market rate for Frenza bonds? 3. Frenza is planning an $160,000 expansion to launch a new product line Frenza currently earns $100,000 in net income, and the new product line will yield $50,000 in additional income before any interest expense. Frenza has three options: (1) do not expand, s payments of 8% annual interest, or (3) expand and raise $160,000 from equity financing. For each option 1, 2, and 3, compute (a) net income and (b) return on equity (Net income + Equity). Ignore any income tax effects Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 1. Based on the current market rates for bonds of Frenza, Nelo, and Lika, which of the following bonds do lenders believe has the highest 2. If Frenza decided to issue new bonds with a contract rate of 11%, would these new bonds be sold at a discount or premium based on th market rate for Frenza bonds? Sho 1. Which of the following bonds do londers believe has the highest risk level? 2. Would these new bonds be sold at a discount or premium based on the current market rate for Frenza bonds? Req 3 > Discount Par value Premium Treasury val UULLE, FL Ceny dls SIUUUUU in het income H new product line will yield $50,000 in additional income before any interest expense. Frenza has three options: (1) do not expand and issue $160,000 in debt that requires payments of 8% annual interest, or (3) expand and raise $160,000 from e financing. For each option 1, 2, and 3. compute (a) net income and (b) return on equity (Net income - Equity) Ignore any inc effects. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Frenza is planning an $160,000 expansion to launch a new product line. Frenza currently earns $100,000 in net income, and the new product line will yield $50,000 in additional income before any interest expense. Frenza has three options: (1) do not expand, (2) expand and issue $160,000 in debt that requires payments of 8% annual interest, or (3) expand and raise $160,000 from equity financing. For each option 1, 2, and 3, compute (a) net income and (b) return on equity (Net income + Equity). Ignore any income tax effects. (Round "Return on equity" to 1 decimal place.) Show less Don't Expand Debt Financing Equity Financing Income before interest expense Interest expense Net income Equity Return on equity %
