Problem #4: You have been hired by a new firm that is just being started. The CFO wants to finance with 60% debt, but the president thinks it would be better to hold the percentage of debt in the capital structure (wd) to only 10%. Other things held constant, and based on the data below, if the firm uses more debt, by how much would the ROE change, i.e, what is ROENew - ROEold? Other Data Operating Data 60% 13% 10% 9% $4,000 Higher w Capital ROIC=EBIT(1- Tax rate Higher interest rate Lower wd Lower interest rate Capital 13.00% 35%