You want to open your very own inventory store called Crowbars Galore, and you need an initial investment of $1 million to do so. You plan to sell this business in one year. Although you can afford to make the investment using your own funds, you consider taking a loan to finance part of the initial cost of $1 million. Specifically, if you take a loan, you will either borrow $450,000 or $750,000, with the rest of the funding coming out of your pocket. A highly anticipated sequel about the famous archeologist Ohio Steve is coming out in a few months and you expect it to cause a surge of demand for your products. You and the lender therefore assume that the value of your business wont drop below $800,000 in one year. The bank is willing to make the loan at 5% EAR (including all fees) to be paid in full in one year (amount borrowed plus interest), at which point you may be able to take another loan or fund the repayment and future investments from the business income or from your savings. a) How will the financing decision affect your return on equity (ROE)? Fill out the following table with the value of equity and the return on equity one year from now: