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Using the chart below, what is the ROE in Scenario 3? Total Capital 8,000.00 Debt to Capital 140% Debt Equity Probability ROE 30.00% 3.50% 40.00%

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Using the chart below, what is the ROE in Scenario 3? Total Capital 8,000.00 Debt to Capital 140% Debt Equity Probability ROE 30.00% 3.50% 40.00% 10.00% 30.00% 00% Scenario Interest Rate 10.00% Tax Rate $3,200.00 $4,800.00 140.00% Scenario1 $3,000.00 S320.00 $2,680.00 $1,072.00 $1,608.00 Scenario 2 Scenario 3 2,000.00 $1,000.00 320.00 Expected Return Standard Deviation CV 10.05% 15.35% 1.53 EBIT S320.00 $1,680.00 S680.00 $272.00 $408.00 EBT $672.00 NI ROE 33.50% O $408 o 8.5% o 66.7% O $272

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