Rose Corporation's condensed balance sheet for Year 2 is reproduced below: Assets Current assets ..... $ 250,000 Noncurrent assets. 1,750,000 Total assets. $2,000,000 Liabilities and Equity Current liabilities...... $ 200,000 Noncurrent liabilities (8% bonds) .. 675,000 Common stockholders' equity..... 1,125,000 Total liabilities and equity.. $2,000,000 .... Additional Information: 1. Net income for Year 2 is $157,500. 2. Income tax rate is 50%. 3. Amounts for total assets and shareholders' equity are the same for Years 1 and 2. 4. All assets and current liabilities are considered to be operating. Required: a. Determine whether leverage (from long-term debt) benefits Rose's shareholders. (Hint: Examine ROCE with and without leverage.) b. Compute Rose's NOPAT and RNOA (use ending NOA).