You will use the following information to answer three questions.

A local group of students is looking for investors for a new company that will develop mobile apps for the healthcare industry. The company requires $$20$ million in start$-$up funds. It can be capitalized with $100\%$ equity financing or with $40$ percent debt and $60$ percent equity. EBIT is $$750,000$ and the company will pay taxes at a rate of $30$ percent. Debt financing would bear an interest rate of $8$ percent.

Answer the following questions based upon the firm using $100\%$ equity financing.

What would be the firm's net income?

Use the format X$,$XXX$,$XXX$.$XX$.$

What would be the total dollar return to investors?

Use the format X$,$XXX$,$XXX$.$XX$.$

What would be the total ROE?

Use the format XX$.$X$\%.$