Firms HL and LL are ldentical except for their financial leverage ratios and the interest rates they pay on debt. Each has $23 milion in invested capital, has $3.45 million of EBIT, and is in the 25% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 45% and pays 12% 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. RolC for firm LL: AOIC for firm HL: b. Calculate the rate of retum on equity (ROE) for each firm. Round your answers to two decimal places. ROE for firm LLi AOL for firm HL: c Observing that HL has a higher ROE, H's treasurer is thinking of raising the-debt-to-capial ratio from 20% to 60% even though that would increase LL's. interest rate on all debe to is\%. Calculate the new ROE for LL Round your answer to two decimal places