FINANCIAL LEVERAGE EFFECTS The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratlos. Neal's total capital is $13 million, 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 Eort for three possible states of the world: 34.7 million with a 0.2 probability, $2.8 million with a 0.5 probability, and 50.6 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 0. ROE % o CV - Debt/Capital ratio is 10%, interest rate is 9% ROE - % % CV- Debt/Capital ratio is 50%, interest rate is 11%. RE - % O- CV- Debt/Capital ratio is 60%, Interest rate is 14% ROE CV