The Veblen Company and the Knight Company are identical every respect except that Veblen Company is not levered. Th market value of Knight Company's $6-$percent bonds is $$1$ mill The financial statistics for the two firms appear below. Neither firm pays taxes.

An investor who is also able to borrow at $6$ percent owns $$10,0$ worth of Knight stock. Can he increase his net return by borrowing money to buy Veblen stock? If so$,$ show the strategy.

$\backslash$table$[[,$Veblen,Knight$],[$Net operating income,$$300,000,$$$300,000$