Cooper Inc. expects sales next year to be $300,000 and operating costs to be $270,000. The company will have $200,000 of assets, and under the current plan they will be financed with 30% debt and 70% common equity. The interest rate on the debt will be 10%, but the TIE ratio must be kept at 4.0 or more. The firm's tax rate is 40%. The new CFO wants to see how the ROE would be affected if the firm increased its debt ratio to the maximum consistent with the required TIE ratio. Assume that sales, operating costs, assets, the interest rate, and the tax rate would all remain constant. By how much would the ROE change in response to the change in the capital structure? a. 0.82% ob. 0.33% c. 1.39% O d. 0.51% e. 1.17%