SOLVE USING PROPER STEPS AND SHOW ALL THE FORMULAS PLEASE !!

Use the following information to answer the questions below Assets Debt Equi Interest Rate Please ignore tax implications for these firms Current Capital Structure 8,000,000 0 8,000,000 10% Proposed Capital Structure 8,000,000 4,000,000 4,000,000 10% Review the ratios of Return on Asset, Return on Equity and Debt to Equity under each of the three following earnings scenarios using the Current Capital Structure Three Earnings Scenarios i. Reccession: ii. Expected: i. Expansion: a. Earnings before interest 500,000 Earnings before interest 1,000,000 Earnings before interest 1,500,000 Review the ratios of Return on Asset, Return on Equity and Debt to Equity under each of the three following earnings scenarios using the Proposed Capital Structure Three Earnings Scenarios i. Reccession: ii. Expected: b. Earnings before interest 500,000 Earnings before interest 1,000,000 Earnings before interest 1,500,000 xpansion Comment on the financial risk, business risk and financial leverage of this firm under the three earnings scenarios and the two capital structures, current and proposed. Please provide a recommendation for the firm regarding the current versus proposed capital structure- which structure should they select and why? c