Ch 13: End-of-Chapter Problems - Capital Structure and Leverage The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $11 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 40%. The CFO has estimated next year's EBIT for three possible states of the world: 54 million with a 0.2 probability, $2.9 million with a 0.5 probability, and 50.4 million 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 at the end of the calculations Debt/Capital ratio is 0. ROE- Debt/Capital ratio is 10% interest rate is 9% ROE - CV- Debt/Capital ratio is 50%, interest rate is 11% ROE - CV Debt/Capital ratio is 60%, interest rate is 14%. ROE