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 6% interest semi-annually for 15 years and the market rate for similar bonds is 5%. 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.

WITH BOND ISSUE / IF BONDS ARE ISSUED

ROA= ? / ?

ROE= ? / ?

DEBT RATIO= ? / ?

D/E= ? / ?

DIVIDENDS= ? / ?