Commonwealth Construction $($CC$)$ needs $$1$ million of assets to get started, and it expects to have a basic earning power ratio of $30\%.$ CC will own no

securities$,$ all of its income will be operating income. If it so chooses, CC can finance up to $45\%$ of its assets with debt, which will have an $11\%$ interest rate. If

it chooses to use debt, the firm will finance using only debt and common equity, so no preferred stock will be used. Assuming a $25\%$ tax rate on taxable income,

what is the difference between CC$\text{'}$s expected ROE if it finances these assets with $45\%$ debt versus its expected ROE if it finances these assets entirely with

common stock? Round your answer to two decimal places.

percentage points