Problem 20-04 Fill in the table using the following information. Assets required for operation: $4,000 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. A B $ S $ $ $ $ $400 $400 $400 $ $ $ Debt outstanding Stockholders' equity Earnings before interest and taxes Interest expense Earnings before taxes Taxes (40% of earnings) Net earnings Return on stockholders' equity $ S S $ $ $ $ $ % % % 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- financial risk. as the firm becomes - Select-financially leveraged. The rate of interest increase in case C due to the -Select- in the The return on stockholders' equity: increases / decreases / increases and then decreases / decreases and then increases / does not change As the firm becomes: less / more in case C due to the increase / decline