Determine the impact the new capital structure would have


An organization is planning to invest $500,000 in assets to begin operations. It pays taxes at a 30% rate. The organization plans to finance 50% of debt to acquire assets, with an interest rate of 10%. Revenues are estimated $250,000. Operating costs are also anticipated to be $120,000. Construct a P&L statement using the above data to determine the impact the new capital structure would have on profit, dollar return and equity. Indicate the optimal choice for investors based on the ROE. Line 1 - Revenues; Line 2- Operating costs; Line 3- Operating income; Line 4 - Interest Expense; Line 5 - Taxale income; Line 6 - Taxes; Line 7 - Profit; Line 8 - Return Dollar Amount; Line 9 - Return of Equity. Please show step by step results. (All equity column and Debit column). This is for a healthcare finance class.

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Financial Management: Determine the impact the new capital structure would have
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