FINANCIAL LEVERAGE EFFECTS The Neal Company wants to estimate next year's return on cquity (ROE) under different financial leverage ratics. Neal's total capital is $10 milon, it currenty 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 poss ble states of the world: $4.6 million with a 0.2 probability, $2.5 million with a 0.5 probablity, and S0.9 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 calculatons. Debt/Capital ratio is 0. ROE14.64 : 9.60 CV0.656 Debl/Capital ratio is 10%, interest rate is 9%. ROE 15.67 Wo CV- Debt/Capital ratio is 50%, interest rate is 11%. ROE =| 22.08 tVo Vo Debt/Capital ratio is 60%, interest rate is 14%. ROE2.00 8.9 CV : 0.315 FINANCIAL LEVERAGE EFFECTS The Neal Company wants to estimate next year's return on cquity (ROE) under different financial leverage ratics. Neal's total capital is $10 milon, it currenty 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 poss ble states of the world: $4.6 million with a 0.2 probability, $2.5 million with a 0.5 probablity, and S0.9 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 calculatons. Debt/Capital ratio is 0. ROE14.64 : 9.60 CV0.656 Debl/Capital ratio is 10%, interest rate is 9%. ROE 15.67 Wo CV- Debt/Capital ratio is 50%, interest rate is 11%. ROE =| 22.08 tVo Vo Debt/Capital ratio is 60%, interest rate is 14%. ROE2.00 8.9 CV : 0.315