Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt, Each has $22 million in invested capital, has $3.3 miliion of EBrT, and is in the 25\% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 45% and pays 11% interest on its debt, whereas LL has a 30% debt-to-capital ratio and pays only 10% interest on its debt. Neither firm uses preferred stock in its capital structure. a. Calculate the return on invested caphal (ROtC) for each firm, Round your answers to two decimal places. ROIC for firm LL: ROtc for firm HL b. Calculate the rate 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 HL has a higher ROE, UL's treasurer is thinking of raising the debt-to-capital ratio from 30% to 60% even though that would increase L's interest rate on ail debt to 15\%. Calculate the new ROE for LL. Round your answer to two decimal places. 4. Problem 13.06 (Break-Even Analysis) The Warren Watch Company selis watches for $23, fxed costs are $115,000, and variable costs are $14 per watch. 3. What is the firmie aain or loss at sales of 9,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent. $ What is the firme nain or loss at sales of 15,000 watches? Loss, If any, should be indicated by a minus sign. Round your answer to the nearest cent. $ b. What is the breakeeven point (unit sales)? Round your answer to the nearest whole number. units c. What would haboen to the hnoal.muno aniat u u......-- rice was raised to 435 ? d. What would haboen to the brenk avnn naint it the wailan -rice was raised to 335 but variable costs rose to $25 a unit? Round your answer to the nearest whole nur