Question: Fill in the table using the following information. $ Assets required for operation: $5,000 Case A - firm uses only equity financing Case B -

Fill in the table using the following information. $ Assets required for operation: $5,000 Case A - firm uses only equity financing Case B - firm uses 50% debt with a 10% annual interest rate and 50% equity A B 1. Debt outstanding $ 2. Stockholders' equity 3. Earnings before 600 600 interest and taxes 4. Interest expense 5. Earnings before taxes 6. Taxes (40% of earnings) 7. Net earnings 8. Return on stockholders' investment % %

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