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I need help with this finance question. The Neal Company wants to estimate next year's return on equity (ROE) under different nancial leverage ratios. Neal's

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I need help with this finance question.

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The Neal Company wants to estimate next year's return on equity (ROE) under different nancial leverage ratios. Neal's total capital is $16 million, it currently uses only common equity, it has no future plans to use preferred stock in its capital structure, and its federal-plus-state tax rate is 25%. The CFO has estimated next year's EBIT for three possible states of the world: $5.6 million with a 0.2 probability, $3.1 million with a 0.5 probability, and $700,000 with a 0.3 probability. Calculate Neal's expected ROE, standard deviation, and coefcient of variation for each of the following debt-to-capital ratios. Do not round intermediate calculations. Round your answers to two decimal places. Debt/Capital ratio is 0. R65: % 0' I "/0 CV : Debt/Capital ratio is 10%, interest rate is 9%. ROE: % 0' 2 "/0 CV : Debt/Capital ratio is 50%, interest rate is 11%. ROE: % 0': "/0 CV : Debt/Capital ratio is 60%, interest rate is 14%. ROE: % 0 I 0A) CV

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