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Fill in the table using the following information. Assets required for operation: $4,400 Case A-firm uses only equity financing Case B-firm uses 30% debt with
Fill in the table using the following information. Assets required for operation: $4,400 Case A-firm uses only equity financing Case B-firm uses 30% debt with an 8% interest rate and 70% equity Case C-firm uses 50% debt with a 12% interest rate and 50% equity If the answer is zero, enter "0". Round your answers for monetary values to the nearest cent. Round your answers for percentage values to one decimal place. A B $ $ $ $ $ $ $440 $440 $440 $ Debt outstanding Stockholders' equity Earnings before interest and taxes Interest expense Earnings before taxes Taxes (40% of earnings) Net earnings Return on stockholders' equity $ $ $ $ $ $ $ $ $ $ $ % % % What happens to the return on the stockholders' equity as the amount of debt increases? Why did the rate of interest increases in case C? The return on stockholders' equity -Select- as the firm becomes -Select-financially leveraged. The rate of interest increase in case C due to the -Select- in the financial risk
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