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 $14 milion, 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: $5.5 million with a 0.2 probability, $2.8 million with a 0.5 probability, and $0.6 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 answers to two decimal places at the end of the calculations Debt/Capital ratio is O. RE- G CV - Debt/Capital ratio is 10%, Interest rate is 99% ROE- - % CV - Debt/Capital ratio is 50% Interest rate is 11% ROE - 9 O % CV Debt/Capital ratio is 60%, interest rate is 14% RE- % 0 = CV