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 (w_d) to only 10%. 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 ROE_New - ROE_Old? Do not round your intermediate calculations.

Operating Data			Other Data
Capital	$4,000		Higher wd	60%
ROIC = EBIT(1 T)/Capital	17.00%		Higher interest rate	13%
Tax rate	35%		Lower wd	10%
			Lower interest rate	9%