QA) Tanten Company has 200% debt and 80% equity. The borrowing rate is 12%. (1) If you own 4% of the stock of Abacus, what is your dollar return if the company has net operating income of $750,000 and...

QA) Tanten Company has 200% debt and 80% equity. The borrowing rate is 12%.

(1) If you own 4% of the stock of Abacus, what is your dollar return if the company has net operating income of $750,000 and the over all capitalization rate , Ko, is 15%? Value of the firm is 500,000

(2) What is the implied required rate of return on equity?