Answer:
Down below
Step-by-step explanation:
<h2>1. It does not expand</h2>
a. Net income= $100,000 (as given in the question)
b. Return on equity= (net income)/(shareholder’s equity)
Shareholder’s equity= $400,000
Thus return on equity= 100000/400000 = 0.25 or 25%
<h2>
2. It expands and issue $160,000 in debt</h2>
a. Net income= $100000 + 50000 – 12800 (debt interest 8% of $160000)
= $137,200
b. Return on equity= (net income)/(shareholder’s equity)
= 137200/400000
=0.343 or 34.3%
<h2>
3. It expands and raises equity of $160000</h2>
a. Net Income= $100000 + 50000
= $150000
b. Return on equity= (net income)/(shareholder’s equity)
= 150000/(400000 + 160000)
Where ($560,000) 400000 + 160000 is shareholder’s equity
= 0.27 or 27%
Try solving it on your own
you must factor the integers
0.00017 is the answer though
Answer:
732.7 I think
Step-by-step explanation:
You just multiply 28 by 26.17
