Commonwealth construction (cc) needs $3 million of assets to get started, and it expects to have a basic earning power ratio of 35%. cc will own no securities, so all of its income will be operating income. if it so chooses, cc can finance up to 30% of its assets with debt, which will have an 8% interest rate. if it chooses to use debt, the firm will finance using only debt and common equity, so no preferred stock will be used. assuming a 40% tax rate on all taxable income, what is the difference between cc’s expected roe if it finances these assets with 30% debt versus its expected roe if it finances these assets entirely with common stock?

Label each of the following statements true, false, or uncertain. explain your choice carefully. a. workers benefit equally from the process of creative destruction. b. in the past two decades, the real wages of low-skill u.s. workers have declined relative to the real wages of high-skill workers. c. technological progress leads to a decrease in employment if, and only if, the increase in output is smaller than the increase in productivity. d. the apparent decrease in the natural rate of unemployment in the united states in the second-half of the 1990s can be explained by the fact that productivity growth was unexpectedly high during that period.