3. LSP is going to invest $1,000,000 in assets to start its new project, and it expects to have a BEP ratio of 20%. LSP plans to have no securities, so all of its income will be operating income. Therefore, LSP can finance up to 50% of its assets with debt, which will have an 8% interest rate. Assuming a 40% tax rate, what is the difference between LSP's expected ROE if it finances with 50% debt versus its expected ROE if it finances its project purely with common stock?* 19.2% 12.2% 8% 7.2% None of the above