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: Good Unlevered Probability EBIT Interest Taxes (409) Net Income BEP ROA ROE Rad 30.00% $500 00 SO 00 $500.00 $200.00 $300.00 10.00% 6.00% 8009 Economy Average 1 40 0096 S700 00 S000 $700 00 $280.00 $420.00 1400% 8.40% 8.40% 30 00% $900.00 S000 $900 00 $380.00 $540.00 18.00% 10.80% 10 80% 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 0.2554 0.2631 0.2708 0.2862