Your sister is thinking about starting a new business. The company would require $375,000 of assets, and it would be financed entirely with common stock. She will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an ROE of 13,5% a. What form of business would she start with and why? Relate two (2) advantages and two (2) disadvantages of this form of business? (2 points) b. If the firm needs to be financed from the beginning with equity, which means going public, Explain the process of going public and relate to her situation would it be successful or not and why? (2 points) c. If the total assets equal the total equity, how much net income must be expected to warrant starting the business? Hint use ROE in the formula sheet. (1 point) son Your sister is thinking about starting a new business. The company would require $375,000 of assets, and it would be financed entirely with common stock. She will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an ROE of 13,5% a. What form of business would she start with and why? Relate two (2) advantages and two (2) disadvantages of this form of business? (2 points) b. If the firm needs to be financed from the beginning with equity, which means going public, Explain the process of going public and relate to her situation would it be successful or not and why? (2 points) c. If the total assets equal the total equity, how much net income must be expected to warrant starting the business? Hint use ROE in the formula sheet. (1 point) son