X 4 - EOC Questions (CNOW) LUK The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $15 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 8 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: $5.8 million with a 0.2 probability, $3.2 million with a 0.5 probability, and $700,000 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 0. ROE: % CV Debt Capital ratio is 10% interest rate is 9%. RE: OL CV: Debt/Capital ratio is 50% Interest rate is 11 RE: 0: CV: Debt/Capital ratio is 60%, Interest rate is 14% RE: 0 CV