Question: please help me :). if u need a better photo let me onow RETURN ON EQUITY Commonwealth Goebben needs $3 million at assets to get

RETURN ON EQUITY Commonwealth Goebben needs $3 million at assets to get started and expects to have a basic caming power rates 355 CC will own no securi- rame will be operating income s, CC can finance up to 2017 its debt, which will have in rate. If it choc ekta u debt, the firm will finne using only debt and conquit na preferred stock will be und Assuming tax rate on taxable incom, what is the fator between CC's expected ROE i finance these anets with debursus its expected ROI makes the assets entirely with amman stole 4-16 RETURN ON EQUITY Commonwealth Construction (CC) needs $3 million of assets to get started, and it expects to have a basic earning power ratio of 35% CC will own no securi- ties, all of its income will be operating income. If it so chooses, CC can finance up to 3044 of its assets with debt, which will have an 8% interest rate. If it chooses to use debt, the firm will finance using only debt and common equity, no no preferred stock will be used Assuming a 40% tax rate on taxable income, what is the differater between CC's expected ROE if it finances these assets with 30% debt versus is expected ROE if it finances these assets entirely with common stacke
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