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ABC Corp's capital structure is 60% equity and 40% debt. Based on the following data, what is the standard deviation of ROE(return on equity)? Assets

ABC Corp's capital structure is 60% equity and 40% debt. Based on the following data, what is the standard deviation of ROE(return on equity)?

Assets $50,000, EBIT $3,000 in recession (20% chance of occurring),

$6,000 in normal case (50% chance of occurring) and $9,000 in boom (30% chance of occurring)

Interest rate 8%, Tax 40%

(If the answer is 5.5%, then enter 5.5.)

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