RETURN ON EQUITY Commonwealith Construction (CC) needs $2 million of assets to get started, and it expects to have a banic earning power ratio of 30% CC will own no securities, so all of is income will be operating income. assets with debt, which will have an 12 % interest rate. If it chooses to use debt, the fim will finance using only debt and common equity, so no preferred stock will be used. Assuming a 30% tas rate on all taable income, what is the derence betwen CC's expected ROE f it finances these asets with 35 debt versus its expected ROE if t nances these assets entirely with common stock? Round your anseer to two decinal places so chooses, cC can eance up to 35% of ts Ss Centin Contine wthut savng 4P