u are given the following information concerning a firm ssets required for operation: $5,200,000 evenues: $8,500,000 perating expenses: $7,750,000 come tax rate: 40%. anagement faces three possible combinations of financing: 1.100% equity financing 2.35% debt financing with a 8% interest rate 3. 70% debt financing with a 8% interest rate a. What is the net income for each combination of debt and equity financing? Round your answers to the nearest dollar Net income b. What is the return on equity for each combination of debt and equity financing? Round your answers to one decimal place Return on equity c. If the interest rate had been 16 percent instead of s percent, what would be the return on equity for each combination of debt and equity financing? Round your answers to one decimal place Return on equity d. What is the implication of the use of financial leverage when Interest rates change? The use of financial leverage is likely to et the return to the common stockholders if the rate of interest is low. If the rate of interest exceed (after adjsting for taxes) the return earned on the borrowed funds, the return to the common stockholder is likely to est financial leverage by the use of O Type here to searech