Firms HD and LD are identical except for their use of debt and the interest rates they pay--HD has more debt and thus must pay a higher interest rate. Both companies are small, so they are not subject to the interest deduction limitation. Based on the data given below, how much higher or lower will HD's ROE be versus that of LD, i.e., what is ROEHD - ROELD? Do not round your intermediate calculations. Taxi Rate is 25%. Applicable to Both Firm HD's Data Firm LD's Data Firms Capital $4,000,000 Wd 70% Wd 20% EBIT $570,000 Int. rate 12% Int. rate 10% 6.69% 3.14% 5.62% 5.35%