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Homework Answers
Solution:
| Particulars | Don't Expand | Debt Financing | Equity Financing |
| Income before interest expense | $90,000.00 | $135,000.00 | $135,000.00 |
| Interest expense | $0.00 | $21,600.00 | $0.00 |
| Net Income | $90,000.00 | $113,400.00 | $135,000.00 |
| Equity | $450,000.00 | $450,000.00 | $630,000.00 |
| Return on Equity | 20.0% | 25.2% | 21.4% |
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Could whoever does the problem please explain it as well or at
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