Question: Please answer those question THANKS Commonwealth Construction (CC) needs $2 million of assets to get started, and it expects to have a basic earning power

 Please answer those question THANKS Commonwealth Construction (CC) needs $2 million

Please answer those question

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Commonwealth Construction (CC) needs $2 million of assets to get started, and it expects to have a basic earning power ratio of 15%. CC will own no securities, all of its income will be operating income. If it so chooses, CC can finance up to 45% of its assets with debt, which will have an 11% interest rate. If it chooses to use debt, the firm will finance using only debt and common equity, so no preferred stock will be used. Assuming a 25% tax rate on taxable income, what is the difference between CC's expected ROE if it finances these assets with 45% debt versus its expected ROE if it finances these assets entirely with common stock? Round your answer to two decimal places. percentage points Grade It Now Save & Continue MPI Incorporated has $6 billion in assets, and its tax rate is 25%. Its basic earning power (BEP) ratio is 11%, and its return on assets (ROA) is 6%. What is MPI's times-interest-earned (TIE) ratio? Do not round intermediate calculations. Round your answer to two decimal places. Grade It Now Save & Continue

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