I already came out with HL 14.37 & LL 16.20 and it's wrong! Two responses came out with that answer as well and it's wrong. What about 28million * .55%*.11%= HL and 28 million *.30%*.10%= LL???

Activity information rake Details Partially corred bhfr09h/Problem 1305 G "Check My work clicked Times Check My Work Problem 13-5 7.11.11 G Financial leverage effects 11 11 Firms HL and u are identical except for their financalleverage ratios and the rates pay on debt Each has sz8 milion in invested capita, has s84 u miluon of EBIT, and is in the 40% federal plus-state interest they of ss% and 11% interest on its dobt, whereas has a tax bracket. Firm HL however, has a debt-to-capital rato pays 30% debt-to-capital ratio and pays only 10% on its debt. Nether firm uses preferred stock un ts capital structure. terest a, calculate the return on invested capital (ROIC for each firm. Round your answers to two decimal places. ROIC for firm LL is 840 3% ROIC for firm HL is 16.94 396 b. Calculate the rate of return on eguty (Roe) for each firm. Round your answers to two dedma puaoes. ROE for firm LL is 23.14 SD% ROE for firm HL is 31.93 0% c observing that Hu has a higher ROE, w's treasurer is thinking of raising the debt-to-capital ratio from 30% 60%, even though that would increase LL's interest rate on all debt to to 15%. Calculate the new ROE for LL Round your answer to two decimal places. 31.50 Partially Correct Check My Work Bean Rey