Frms HL and LL are identical except for their financisi leverage ratios and the interest rates they pay on debt. Each has s16 million in invested capital, has 12.4 milion of Eerr, and is in the 25% federal-pius-state tax bracket. Eoth firms are small with averoge sales of 325 milion or less during the past 3 years, so both are exempt from the interest deduction fimitation. Firm HL, however, has a debt-to-capital ratio of 6056 and payi 1394 interest on its A. Caiculate the retum on invested capital (ROtC) for each firm. Round your answers to two decimal pleces. Rotc for firm 4 Rolc for firm HL b. Calculate the return sn equily (ROE) for ench firm. flound your answers to two decimal placks. ROE for firm L: RQE for firm HLI c. Observing that HL has o higher ROE, Lis treasurer is thinking of reising the debt-to-capital ratio from 25% to 60%. wen thasgh that would increase Li's interest rate on ail debt to is celculate the new roe for LL found your anmer to two decimal pleces