A firm needs $200,000 to start and expects Sales $300,000 Expenses $294,000 Tax rate 40% a

Finance Feb 13, 2023

A firm needs $200,000 to start and expects

Sales $300,000
Expenses $294,000
Tax rate 40%

a. What are earnings if the owners invest the $200,000?
b. If the firm borrows 40% of the $200,000 at an interest rate of 10%, what are the firm's net earnings?
c. What is the return on the owners' investment in each case?