Khatibco company has a capital of $300,000 with a debt ratio of 40% and paying interest for 10%. It has 10,000 shares outstanding that are expected to stay constant and it has the following information: Price/ Unit $10 Variable cost/Unit $5 Fixed costs $60,000 Tax rate 40% The expected units sold based on probability of economic situation: Economy Good Normal Bad Probability 0.3 0.4 0.3 Units Sold 150,000 100,000 80,000 1. The ROE in a normal economic situation would be O a. 111.1% O b. 110.1% 30020 1. The ROE in a normal economic situation would be * O a. 111.1% O b. 110.1% O c. 300.3% O d. 142.67% e. None of the above . 2. The EPS in a bad economic situation would be O a. 28,38% O b. 28.38% O c.$19.68 O d. -$28.38 O None of the above APPflegal 3. The expected ROE would be * O a. 50.2% O b. 140.01% O c. 157.67% O d. 111.45% O e. None of the above 4. The expected EPS would be a.28.38% O b.-$28.38 O c.$28.38 d. $90.3 O e None of the above 5. The risk in the ROE would be O a. 46.82% O b. $46.82% O c. 46.82 O d.-$46.82 e. None of the above 6. The risk in the EPS would be * O a. 8.426% O b. -8.426% O c.7% O d. $8.426 O e None of the above