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 (wa) to only 10%. Both companies are small, so they are not subject to the interest deduction limitation. 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 ROEHigher ROELower? Do not round your intermediate calculations. Operating Data Other Data Capital ROIC - EBIT(1 - 1)/Capital Tax rate $4,000 Higher wa 13.00% Higher interest rate 25% Lower wa Lower interest rate 60% 13% 10% 9%