1 Check My Work (2 remaining) 2 2 eBook The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios Neal's total capital is $15 milion, 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 is 25%. The CFO has estimated next year's EBIT for three possible states of the world: $4 million with a 0.2 probability, 12.9 million with a 0.5 probability, and $500,000 with a 0.3 probability Calculate Neal's expected ROE, standard deviation, and coeffident of variation for each of the following debt-to-capitalvation. Do not found intermediate calculations. Round your answers to two decimal places Debt Capital ratio is 0. RE A-Z 9 10 CV: De Capital radio is 10%, interest rate is ROE ai CV: Debit/Capital ratio 50%, interest rate is 115 RO + 2.38 CVI Debt Capital 60% interstate is 14% WE CV Check My Work) Problemet of Sri Agrariatire MacBook Air OSC o ODO F3 DODFA 3-EOC Questions (CNOW onments Chapter 13EOC Questions (CNOW) Algunent Sure 42.59% Save Submit Assignment for Grading tions Problem 13.07 (Financial Leverage Effects) Question 3 of 10 Check My Work (2 remaining) eBook The Neal Company wants to estimate next year's retum 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 is 25%, The CFO has estimated next year's EBIT for three possible states of the world: $4 million with a 0.2 probability, $2.9 million with a 0.5 probability, and $500,000 with a 0.J 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. Debit/Capital ratio is 0. RE: CV: Debt Capital ratio is 10%, interest rate is ROE: 98 CV. Debt/Capitat ratio is 50%, interest rate is 11% RE ** OI CV. Debt/Capital ratio is 60% Interest rates 149 RE: as Check My Work (a remaining 0 m Problem 13.01 Financial Laverager Effects) Questionar 10 Save Submit Assignment for Grading