2. As the financial controller for KL Incorporated, a highly diversified conglomerate, you are considering the alternative financing plans for the next millennium. Due to the good relationship with the banks, your firm is able to obtain loan at a favorable rate of 8%. The plans are as follows: 70 % equity financing and 30% debt financing 50% equity financing and 50% debt financing Determine the rate of return on shareholders' capital for each of the financing alternatives if the rate of return on assets turned out to be as follows: a) 20% b) -24%