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. FirmA Economy Unlevered Bed Average Good Probability 30.00% 40.0096 30.00% EBIT S500.00 $700.00 $900.00 Interest SO.00 SO 001 $0.00 EBT $500.00 $700.00 $900.00 Taxes (4095) $200.00 $280.00 $360.00 Net Income $300 00 $420.00 $540.00 10.0096 14 0096 18 00% ROA 6.0096 8.40% 10.8096 ROE 6 0095 8.4096 10.80% BEP 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 coefficient of variation of the new ROE distribution 0.2785 0.2631 0.2708 0.2554 0.2862