7) (6 points) Using the data below, a) Calculate the business valuation based on equity for this year. b) What is the rate of return for the estimated net income based on this year's equity value (ROI or ROE)? c) If all of next years estimated net profit goes into retained earnings (and cash on hand), and no other changes occur to assets and liabilities, what will be the total equity be for next year? Mike's Motorbikes This year: Total Assets: Total Liabilities: $1,250,000 $ 570,000 Next year: Estimated Revenue 1,500,000 Net Profit is 20% of sales