5 pts 2 Question 19 Assume that Firm A is an all-equity firm with total assets of $5,000 and the following distribution of EBIT for the coming year. 250 Firma Urlevered Ha Aware Gas Probability 30 00% 20 009 50.00% EHIT $500 000 S70000 $100 00 Inleid 50.00 $0.00 $0.00 ICOT 5500.00 $700.00 19900.00 Ten (40%) $200.00 $200.00 $380.00 Net Income $300 DO S420 00 $640 00 BEN 10.00% 14.00 10.00% ROA 60095 8409 10 80S ROE 6.00% 8.40% 10.00% Now assume that the firm plans to issue $2,000 of debt, at an interest rate of 6.4 percent, and use the proceeds to repurchase equity (you may ignore potential impacts on price and assume that the form will then have $3,000 of equity). Given this information, determine the standard deviation of the new ROE distribution O 2.653% 0 3.4879 O 3.098% 3.774% 2.800%