10 You work for the CEO of a new company that plans to manufacture and sell new product, awch thaha embedded TV set and a magnifying glass crystal. The issue now is how to finance the company with only quity with a mix of debt and equity. Expected operating income is $180,000. The company is small, so it is not about to the interest deduction limitation. Other data for the firm are shown below. How much highet or we will the firm's expected ROE be if it uses some debt rather than all equity, i.e., what is ROBL-ROEN? Do not on you intermediate calculations. 0% Debt, 60% Debt, Oper. income (EBIT) $180,000 $180,000 Required investment $2,500,000 $2,500,000 % Debt 0.0% 60.0% $ of Debt $0.00 $1,500,000 $ of Common equity $2,500,000 $1,000,000 Interest rate NA 10.00% Tax rate 25% 25%