Click here to read the eBook Business and Financial Risk FINANCIAL LEVERAGE EFFECTS The Neal company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $15 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 40%. The CFO has estimated next year's EBIT for three possible states of the world: $6 million with 0.2 probability, 52.8 million with a 0.5 probability, and $0.9 million with a 0.3 probability Calculate Neal's expected ROF, standard deviation, and coefficient of variation for each of the following debt-to-capital ratlos. Do not round Intermediate calculations. Round your answers to two decimal places at the end of the calculations. Debt/Capital ratio is 0. ROE % % CV Debt/Capital ratio is 10%, Interest rate is 9% ROE CV Debt/Capital ratio is 50%, interest rate is 11% ROE % CV- Debt/Capital ratio is 60% Interest rate is 14% ROE O- CV- Click here to read the eBook: Business and Financial Risk FINANCIAL LEVERAGE EFFECTS The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $15 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 40%. The CFO has estimated next year's EBIT for three possible states of the world: $6 million with a 0.2 probability, $2.8 million with a 0.5 probability, and $0.9 million with a 0.3 probability Calculate Neal's expected ROE, standard deviation, and coeficient of variation for each of the following debt-to-capital ratios. Do not round Intermediate calculations. Round your answers to two decimal places at the end of the calculations. Debt/Capital ratio is o ROE O- CV- Debt/Capital ratio is 10%, Interest rate is 9% ROE- 0- CV - Debt/Capital ratio is so interest rate is 11% ROE % CV - Debt/Capital ratio is 60%, interest rate is 149 ROE CV Click here to read the eBook Business and Financial Risk FINANCIAL LEVERAGE EFFECTS The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capitalis $15 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 40%. The CFO has estimated next year's Edry for three possible states of the world: $5 million with a 0.2 probability, $2.8 million with = 0.5 probability, and $0.9 million 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 wowers to two decimal places at the end of the calculations Debt/Capital ratio is o ROE O- CV- Debt/Capital ratio is 10% Interest rate is 9%. ROE O CV- Debt/Capital ratio is 50% Interest rate is 11% ROE CV Debit/Capital ratio is 60% interest rate is 14% ROE CV Click here to read the eBook Business and Financial Risk FINANCIAL LEVERAGE EFFECTS The Neal company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $15 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 40%. The CFO has estimated next year's EBIT for three possible states of the world: $6 million with 0.2 probability, 52.8 million with a 0.5 probability, and $0.9 million with a 0.3 probability Calculate Neal's expected ROF, standard deviation, and coefficient of variation for each of the following debt-to-capital ratlos. Do not round Intermediate calculations. Round your answers to two decimal places at the end of the calculations. Debt/Capital ratio is 0. ROE % % CV Debt/Capital ratio is 10%, Interest rate is 9% ROE CV Debt/Capital ratio is 50%, interest rate is 11% ROE % CV- Debt/Capital ratio is 60% Interest rate is 14% ROE O- CV- Click here to read the eBook: Business and Financial Risk FINANCIAL LEVERAGE EFFECTS The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $15 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 40%. The CFO has estimated next year's EBIT for three possible states of the world: $6 million with a 0.2 probability, $2.8 million with a 0.5 probability, and $0.9 million with a 0.3 probability Calculate Neal's expected ROE, standard deviation, and coeficient of variation for each of the following debt-to-capital ratios. Do not round Intermediate calculations. Round your answers to two decimal places at the end of the calculations. Debt/Capital ratio is o ROE O- CV- Debt/Capital ratio is 10%, Interest rate is 9% ROE- 0- CV - Debt/Capital ratio is so interest rate is 11% ROE % CV - Debt/Capital ratio is 60%, interest rate is 149 ROE CV Click here to read the eBook Business and Financial Risk FINANCIAL LEVERAGE EFFECTS The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capitalis $15 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 40%. The CFO has estimated next year's Edry for three possible states of the world: $5 million with a 0.2 probability, $2.8 million with = 0.5 probability, and $0.9 million 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 wowers to two decimal places at the end of the calculations Debt/Capital ratio is o ROE O- CV- Debt/Capital ratio is 10% Interest rate is 9%. ROE O CV- Debt/Capital ratio is 50% Interest rate is 11% ROE CV Debit/Capital ratio is 60% interest rate is 14% ROE CV