irms HL and LL are identical except for their financial leveroge ratios and the interest rates they pay on debt. Each has $23 million in invested capital, has $5.75 million of EIT, and is in the 40% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 55% and pays 12\%. interest on its debt, whereas HL has a 30\%s debto-capital ratio and pays only 9 hi interest on its debt. Neither firm uses preferred stock in its capital structure. a. Calculate the return on invested capital (RO1C) for each firm. Round your answers to two decimal places. Roic tor firm ILi Rolc for firm Hit b. Calculate the rate of return on equity (ROt) for each farm. Pound your answers to two decimal places hot for him ti. RoE for firm th c. Observing that HL has a higher ROC, U's treasurer is thinking of rasing the debt-to-capital ratio from 30\% to G0\%h even theugh that would increase U's intereit rate on all debt to 1549. Calculate the new ROE for tt. Round your answer to two decimal places