Assume that Firm A is an all-equity firm with total assets of $1,000 and the following distribution of EBIT for the coming year: As you can calculate, the standard deviation of the ROE distribution is 1.39 percent. Now assume that the firm plans to issue $300 of debt, at an interest rate of 10 percent, and use the proceeds to repurchase equity (you may ignore potential impacts on price and assume that the firm will then have $700 of equity). Determine the standard deviation of the new ROE distribution if the firm does issue this debt. 1.99%