The Neal Company wants to estimate next year's return on equity $($ROE$)$ under different financial leverage ratios. Neal's total capital is $$12$ 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: $$4$ million with a $0\mathrm{.}2$ probability, $$2\mathrm{.}9$ million with a $0\mathrm{.}5$ probability, and $$800,000$ with a $0\mathrm{.}3$ 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.

Debt$/$Capital ratio is $0.$

$CV$:

Debt$/$Capital ratio is $10\%,$ interest rate is $9\%.$

R$$E:

$\%$

$$:

$\%$

$CV$ :

Debt$/$Capital ratio is $50\%,$ interest rate is $11\%.$

R$$E:

$\%$

$$ :

$\%$

CV:

Debt$/$Capital ratio is $60\%,$ interest rate is $14\%.$

R$$E:

$\%$

$$:

$\%$

$CV$ :