4. SHA Hotel Company (SHC), which is just being formed, needs $12 million of assets, and it expects to have a basic earning power ratio (EBIT/TA) of 25%. SHC will own no securities, so all of its income will be operating income. If it chooses to SHC can finance up to (1) 80% of its assets with debt, which will have an 8% interest rate (2) 60% with a 6% interest rate. (3) 50% with a 4% interest rate and (4) no leverage (debt). Assuming a 40 percent federal-plus-state tax rate on all taxable income, what are expected ROE (NI/TE) among 4 different financing options for this $10 million asset investment. (20 points)