using Summer Peebles, Inc.$\text{'}$s condensed $2014$ financial data below:

Assets

Current Assets

$$250,000\mathrm{.}00$

Noncurrent Assets

$$1,750,000\mathrm{.}00$

Total Assets

$$2,000,000\mathrm{.}00$

Liabilities and Equity

Current Liabilities

$$200,000\mathrm{.}00$

Noncurrent Liabilities $(8\%$ Bonds$)$

$$675,000\mathrm{.}00$

Common Stockholders' Equity

$$1,125,000\mathrm{.}00$

Total Liabilities and Equity

$$2,000,000\mathrm{.}00$

Additional Information:

Net income for $2014$ is $$157,500.$

Income tax rate is $50\%.$

Amounts for total assets and shareholders' equity are the same for $2013$ and $2014.$

All assets and current liabilities are considered to be operating.

Required:

Determine whether leverage $($from long$-$term debt$)$ benefits Rose's shareholders. $($Hint: Examine ROCE with and without leverage.$)$

Compute the NOPAT and RNOA $($use ending NOA$).$