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200,000 in assets to get into operation with only 2 financing alternatives 1.(all equity-all common stock) 2.50% equity and 50percent debt. you will put the entire 200,000 needed to purchase the assets if 50 percent debt financing is used u will contribute only 100,000 of your own funds and the remaining 100,000 will be obtained from the creditors say a bank loan at 10% interest rate Please fill all the ? spaces and explain your answer.

balance sheet sotck stock debt

current assets $100,000 $100,000
fixed assets $100,000 $100,000
total assets $200,000 $200,000
bank loan @10% cost 0 
common stock $200,000 
income statement
revenues $150,000 $150,000
operating costs $100,000 $100,000
operating income $50,000 $50,000
interest expense 0 
taxable income (40%rate) 
net income 
return on investment 

Basic Finance, Finance

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