What is the probability that the debt alternative is better than the equity alternative with respect o earnings per share? ROI-ROE Analysis Magnovex Company has an average cost of debt of 8 percent and a tax rate of 50 percent. The ROI is 14 percent. What financial leverage ratio should the company adopt, if ts target ROE is 15 percent? ROI-ROE Analysis Shankaran Transport has an average cost of 9 percent for debt financing. The financial leverage ratio is 0.6 and the ROI is 12 percent. What is the ROE for the company, if ts tax rate is 60 percent? KOI-ROE Analysis Nanda Enterprises has a target ROE of 18 percent. The financial leverage atio for the firm is 0.7 and its tax rate is 50 percent. What ROI should the company plan to earn? The cost of debt is 12 percent