Click here to read the eBook: Business and Financial Risk FINANCIAL LEVERAGE EFFECTS The Neal Company wants to estimate next year's retum on equity (ROE) under different financial leverage ratios. Neal's total capital is $16 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: $4.2 million with a 0.2 probability, $2.4 million with a 0.5 probability, and $0.6 million with a 0.3 probability Calculate Neal's expected HOE, standard deviation, and coefficient of variation for each of the rotowing debt-to-capital ratios. Do not round intermediate calculations. Hound your answers to two decimal places at the end of the calculations Deb/Capital ratio is 0 ROE- U- CV - Debt/Capital ratio is 10%, Interest rate is 9% ROE- 0- CV- Debt/Capital ratio is 50%, interest rate is 11% HOE- CV Debt/Captal ratio is 60interest rate 14% ROE O CV