Question: (c)Construct a simple numerical example to convince Rooney that the lease would expose the law firm to financial risk. You may wish to consider what

(c)Construct a simple numerical example to convince Rooney that the lease

(c)Construct a simple numerical example to convince Rooney that the lease would expose the law firm to financial risk. You may wish to consider what is the rate of return on the firms equity investment in the office building if a recession arrives and the market value of the (leased) office building falls to 99 million after one year?; what is the rate of return with conventional mortgage financing?; with all-equity financing? [1 5 marks]

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