3. Problem 13.05 (Financial Leverage Elects) cBook Firms HL and I are identical except for the financial leverage rates and the interest rates they pay on debt. Each has $19 million in invested capital, has $2.5 million of EBIT, and the 25% federal plus-state tax bracket. Firm H, however, has a debt to-capital ratio of 50% and pays 12% interest on its delst, whereas Ll has a 20% debt to capital ratio and pays only 6% interest on its debt. Neither firm uses preferred stock its capital structure. a. Calculate the return on invested capital (ROIC) for each tim. Bound your answers to two decinal places ROIC form: ROI for farm HL 1. Calculate the rate of return on equity (ROE) for each tarm Hound your answers to two decimal places IDE for form O for him HL c. Observing that has a higher ROLLE's treasure thinking of raising the debt-to-capitale from 20% to even though that we werest rate and 15. Calowane the new HD for Ll Round your answer to two decimal places