Question: 1. Compare the two financing options in terms of projected return on the owners equity investment. Ignore any effect from income taxes. 2. What if

1. Compare the two financing options in terms of projected return on the owner’s equity investment. Ignore any effect from income taxes.

2. What if Dalton is wrong and the company earns only 4 percent in operating income on total assets?

3. What should Dalton consider in choosing a source of financing?


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