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%. The company is small, so it is 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 found your intermediate calculations Operating Data Capital ROIC = EBIT(1 - Ty/Capital Tax rate $4,000 Other Data Higher wa Higher interest rate Lower wd Lower interest rate 60% 13% 12.00% 25% 10% 9% a. 2.54% b. 3.75% C280W d. 1.87% e 222