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1 Normal 1 No Spac... Heading 1 Title ab x x? APA Dictate Heading 2 Editor - 1> A Select Font Paragraph Styles Editing Voice Editor 1) 9250 pts) Short Answers: 1. (10 %) Explain the graph below: 18 requity expected return on equity 16 14 Passets = expected return on assets 12 10 Rates of return (%) 00 8 rdebt = return on debt - 2 0 0 0 1 1.4 0.1 0.2 0.3 0.4 0.5 1.1 1.2 1.3 1.5 1.6 0.6 0.7 0.8 0.9 1 Debt-equity ratio, DIE This graph shows that, currently, this company's return on assets remains consistently