The Neal Company wants $to$ estimate next year's return $on$ equity $(ROE)$ under different financial leverage ratios. Neal's total capital $is$ $$10$ 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 $is25\%.$ Neal $is$ a small firm with average sales $of$ $$25$ million $or$ less during the past $3$ years, $so$

$itis$ exempt from the interest deduction $limitation.$ The CFO has estimated next year's EBIT for three possible states $of$ the world: $$4$ million with $a0\mathrm{.}2$ probability, $$2\mathrm{.}2$ million with $a0\mathrm{.}5$

probability, and $$700,000$ with $a0\mathrm{.}3$ probability. Calculate Neal's expected ROE, standard deviation, and coefficient $of$ variation for each $of$ the following debt$-to-$capital ratios. $Do$ not round

intermediate calculations. Round your answers $to$ two decimal places.

Deb$\frac{t}{C}$apital ratio $is0.$

$RE$: $\%$

$$:$\%$

$CV$:

Deb$\frac{t}{C}$apital ratio $is10\%,$ interest rate $is9\%.$

$RE$: $$

$\%$

$$:

$\%$

$CV$ :

Deb$\frac{t}{C}$apital ratio $is50\%,$ interest rate $is11\%.$

$RE$: $$

$$:

$\%$

$CV$:

$\%$

Deb$\frac{t}{C}$apital ratio $is60\%,$ interest rate $is14\%.$

$RE$:

$\%$

$$:

$\%$

$CV$ :