$1.\backslash ((20\backslash \%)\backslash )$ You and a friend, both recent college graduates, want to start a restaurant. You have both worked as managers of local resources. and your consumilding and land from a local developer but will convenience of fast food. You plan to lease the building, inventory, and working capital over and aboved about $\backslash (\backslash$$ $150,000\backslash )$ in capital for equipment, below additional $\backslash (\backslash$$ $150\backslash ),$ briefly explain your reasoning. provided, briefly explain your reasoning.

Bank loan

Venture capital

Angels

$\backslash (\backslash$qquad $\backslash )$

$\backslash (\backslash$qquad $\backslash )$

$\backslash (\backslash$qquad $\backslash )$

$\backslash (\backslash$qquad $\backslash )$

$\backslash (\backslash$qquad $\backslash )$

$2.\backslash ((10\backslash \%)\backslash )$ Assume you are the President of an S$-$Corporation. Further assume your cost of debt is less than your Return on Assets and that all accounts remain constant except for those accounts directly affected by a change in capital structure $($e$.$g$.$ interest expense$).$ If your Debt to Equity ratio increases $($i$.$e$.$ you borrow more money and distribute the proceeds to your shareholders$),$ you would expect your Return on Equity to: $($circle one$)$ increase decrease not change

and your Return on Sales to: $($circle one$)$ increase decrease not change

In the space provided, briefly explain why.