Problem 20-04 Fill in the table using the following information. Assets required for operation: $5,000 Case A-firm uses only equity financing Case B-firm uses 35% debt with an 8% interest rate and 65% equity Case C-firm uses 50% debt with a 10% interest rate and 50% equity If the answer is zero, enter "0". Round your answers for monetary values to the nearest cent. Round your answers for percentage values to one decimal place Debt outstanding Stockholders' equity Earnings before interest and taxes Interest expense Earnings before taxes Taxes (40% of earnings) Net earnings Return on stockholders' equity What happens to the return on the stockholders' equity as the amount of debt increases? Why did the rate of interest increases in case C? The return on stockholders' equity Select in the financial risk. Select as the firm becomes select financially leveraged. The rate of interest increase in case C due to the Debt outstanding Stockholders' equity Earnings before interest and taxes -Select Interest expense Earnings before taxes Taxes (40% of earnings) Net earnings increases and then decreases Return on stockholders' equity decreases and then in What happens to the return on the amount of debt increases? Why did the rate of interest increases in case C? The return on stockholders' equity Set | -Select in the financial risk. as the firm becomes Select financially leveraged. The rate of interest increase in case due to the Earnings before taxes Taxes (40% of earnings) Net earnings Return on stockholders' equity -Select What happens to the return on the stockholders' equity as the amount of debt increa id the rate of interest increases in case C? Select as the firm becomes select financially leveraged. The rate of interest Increase in case C due to the The return on stockholders' equity Select in the financial risk. Return on stockholders' equity What happens to the return on the stockholders' equity as the amount of debt increases? Why did the rate of interest increases in case C? The return on stockholders' equity --Select- Select in the financial risk as the firm becomes Select financially leveraged. The rate of interest increase in case C due to the -Select- Continue without saving