Question: For questions 21 - 25 [2 points each], please refer to the chart below: Company A Company B Debt @ 10% interest $2,000 $0 Equity

For questions 21 - 25 [2 points each], please
For questions 21 - 25 [2 points each], please refer to the chart below: Company A Company B Debt @ 10% interest $2,000 $0 Equity 200 2200 Total Assets 2200 2200 EBIT 240 240 - Interest Expense 200 Earnings before tax 40 240 - Tax @ 35% 14 84 Earnings after tax $26 $ 156 21. Calculate the Return on Equity: Company A: Company B: 22. Calculate the Return on Assets: Company A: Company B: 23. Calculate the Return on Invested Capital: Company A: Company B: 24. The illustration shows that a high level of borrowing will tend to make the ratio look higher. A. Return on Equity

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