What is the effect of financial leverage on return on equity in 2014? Total Current Assets Net fixed assets Total Assets 2014 $500 $2,000 2014 2015 $800 $885 $400 $450 $100 $100 $300 $335 $35 $35 Sales COGS Depreciation EBIT Interest $2,500 $200 $330 Accounts Payable Long- term debt due in 1 year Long-term debt Total Liabilities $265 $300 $93 $105 $172 $195 EBT Taxes Net Income $905 $1.435 Add. RE. Dividends $160 $183 $12 $12 Common Stock Retained Earnings Total equity $345 $720 $1,065 Stock Price Shares Outstanding $3.50 $3.75 600 650 $2,500 Total Liabilities & Equity 8.12 percent 6.29 percent 7.70 percent 4.35 percent 5.78 percent