7. Problem 13.07 (Financial Leverage Effects) eBook The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $17 million, it currently uses only common equity, it has no future plans to use preferred stock in its capital structure, and its federal-plus-state tax rate is 25%. The CFO has estimated next year's EBIT for three possible states of the world: $4.9 million with a 0.2 probability, $2 million with 0.5 probability, and $300,000 with a 0.3 probability. Calculate Neal's expected ROE, standard deviation, and coefficient of variation for each of the following debt-to-capital ratios. Do not round intermediate calculations. Round your answers to two decimal places. Debt/Capital ratio is 0. RE: % % CV: Debt/Capital ratio is 10%, interest rate is 9%. RE: % % CV: Debt/Capital ratio is 50%, interest rate is 11%. RE: % O: % CV: Debt/Capital ratio is 60%, interest rate is 14%. RE: % % 0: CV