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The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $13 million, it currently

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The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $13 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 is 25%. Neal is a small firm with average sales of $25 million or less during the past 3 years, so it is exempt from the Interest deduction limitation, The CFO has estimated next year's EBIT for three possible States of the world: $6 million with a 0.2 probability, $3.3 million with a 0.5 probability, and $800,000 with a 0,3 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 Debt Capital ratio is o ROE: 03 CV Debt Capital ratio is 10% interest rate is 99 ROE CV Debt/Capital ratio lo 50, interest rate is 11 ROE CV Debt Capital ratio is 60% Interest rate is 14% ROE: CV

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