3. Problem 13.05 (Financial Leverage Effects) e look Firma Hand LL are identical except for their financial leverage ratios and the interest rates they pay on debt. Each has $18 million in invested capital, has $2.7 million of EBIT, and is in the 25% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 55% and pays 12% interest on its debt, whereas LL has a 30% debt-to-capital ratio and pays only 10% interest on its debt. Neither firm uses preferred stock in its capital structure a. Calculate the return on invested capital (ROIC) for each firm. Round your answers to two decimal places ROIC for firm ROIC for firm HL D. Calculate the rate of return on equity (ROE) for each firm. Round your answers to two decimal places HOE for tim ROE for form Observing that has a higher ROELLS treasurer is thinking of raising the debt-to-capital ratio from 30% to 60% even though that would increase LLS interest rate on al Get to 15 Calculate the new ROE for LL. Round your answer to two decimal places