Question: Using the diagram below how would the ROA and the ROE change if economic conditions made borrowing money more expensive? Specifically, what would be the

Using the diagram below how would the ROA and the ROE change if economic conditions made borrowing money more expensive? Specifically, what would be the impact if the interest rate on $50,000 was 10 percent; $100,000,15 percent; $150,000,17.5 percent; and $200,000, 20 percent? Table 10.4 Abbreviated Balance Sheet Table 10.5 ROA and ROE Values for 2010 and Projections for 2011

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