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 $ $3\mathrm{.}3$ million of EBIT $,$ and is in the $25\%$ federal $-$ plus $-$ state tax bracket $.$ Both firms are small with average sales of $ $25$ million or less during the past $3$ years $,$ so both are exempt from the interest deduction limitation $.$ Firm HL $,$ however $,$ has a debt $-$ to $-$ capital ratio of $60\%$ and pays $11\%$ interest on its debt $,$ whereas LL has a $20\%$ 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 capital $($ ROIC $)$ for each firm $.$ Round your answers to two decimal places $.$ ROIC for firm LL : $\%$ ROIC for firm HL : $\%$ b $.$ Calculate the return on equity $($ ROE $)$ for each firm $.$ Round your answers to two decimal places $.$ ROE for firm LL : $\%$ ROE for firm HL : $\%.$ Observing that HL has a higher ROE $,$ LL$\text{'}$s treasurer is thinking of raising the debt $-$ to $-$ capital ratio from $20\%$ to $60\%$ even though that would increase LL$\text{'}$s interest rate on all debt to $15\%.$ Calculate the new ROE for LL Round your answer to two decimal places $.\%$