Your company's summarized financial information for the beginning and projected end of the current year is as follows:

	Beginning of the Year	End of the Year (projected)
Assets	$90,000	$100,000
Liabilities	30,000	30,000
Equity	60,000	70,000
Net Income		15,000

Your company is considering issuing 30 bonds at the end of the year (December 31st). The bonds will pay 8% interest semi-annually for 10 years and the market rate for similar bonds is 5%. Therefore, the total bond proceeds are $37,015.12. Calculate the following ratios with and without the bond issue.

Review question: how much did the company pay in dividends this year (if any)? The company did not issue or repurchase any stock during the year.

ROA ROE Debt Ratio- DE Dividends- 10 Without Bond If Bonds are Issue Issued