An enterprise owner is considering three options to raise funds for his business activities, each with a different source of capital: - option I - business activities financed exclusively with equity of ( $ 600,000 ), - option II - equity amounts to ( $ 450,000 ), the remaining ( $ 150,000 ) is borrowed from a bank at the annual rate of ( 7.6 % ), - option III - equity amounts to ( $ 350,000 ), the remaining ( $ 250,000 ) is borrowed from a bank at the annual rate of ( 10.4 % ). The annual net sales revenue is expected to reach ( $ 760,000 ) with total operating costs being ( $ 687,000 ). The enterprise pays ( 19 % ) income tax. Based on the information provided, determine: - return on equity depending on the adopted financing option and its increase ( ( riangle R O E ) ) possible to obtain due to using the debt, - the degree of financial leverage for each financing option, - threshold EBIT and the threshold return on equity needed for financial leverage to work.

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An enterprise owner is considering three options to raise funds for his business activities, each with a different source of capital: option I - business activities financed exclusively with equity of $600,000, - option II equity amounts to $450,000, the remaining $150,000 is borrowed from a bank at the annual rate of 7.6%, - option III equity amounts to $350,000, the remaining $250,000 is borrowed from a bank at the annual rate of 10.4%. The annual net sales revenue is expected to reach $760,000 with total operating costs being $687,000. The enterprise pays 19% income tax. Based on the information provided, determine: . return on equity depending on the adopted financing option and its increase (AROE) possible to obtain due to using the debt, the degree of financial leverage for each financing option, threshold EBIT and the threshold return on equity needed for financial leverage to work. An enterprise owner is considering three options to raise funds for his business activities, each with a different source of capital: option I - business activities financed exclusively with equity of $600,000, - option II equity amounts to $450,000, the remaining $150,000 is borrowed from a bank at the annual rate of 7.6%, - option III equity amounts to $350,000, the remaining $250,000 is borrowed from a bank at the annual rate of 10.4%. The annual net sales revenue is expected to reach $760,000 with total operating costs being $687,000. The enterprise pays 19% income tax. Based on the information provided, determine: . return on equity depending on the adopted financing option and its increase (AROE) possible to obtain due to using the debt, the degree of financial leverage for each financing option, threshold EBIT and the threshold return on equity needed for financial leverage to work.