Question: Fill the blanks Based on the given information, please fill the blanks in the following table. Part 1 is the capital structure of an unlevered

Fill the blanks Based on the given information, please fill the blanks in the following table. Part 1 is the capital structure of an unlevered firm vs a levered firm. Part 2 is the performance measures of the two firms under three economic conditions. Part 3 is the homemade leverage used by investors to buy unlevered firm but to reach the performance of levered firm.

Current

Proposed

Assets

20000

20000

Debt

0

8000

Equity

20000

20000

Debt/Equity Ratio

Interest Rate

number of shares

8%

8%

Share Price

50

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