FINANCIAL LEVERAGE EFFECTS Firms Hard Larential except for their financial leverage ratios and the interest rates they pay on debt. Each has $12 million in invented capital, has $1.6 million or Eart, and is in the 409 federal-plus- state tax bradet Firm HL, however, has a debt-to-capital ratio of 5% and pays 13% interest on its debt, whereas has a 20. debt-to-capital cat and Days only interest on its debt. Neither firm uses preferred stock in its capital structure Calculate the return on invested capital (AOAC) for each firm. Round your answers to two decimal placut ROIC forms ROC for furm HL b. Calculate theme of return on equity (ROE) for each firm. Round your answers to two decimal places ROE for firm LLI ROE for firm HLI c. Observing that has a higher ROB. streature is thinking of raising the debt-to-capitat ratio from 20% to 60% even though that would increase interest rate on all debt to 15%. Calculate th new ROE for Ioued your answer to two decimal plan