Companies A and B are in the same industry except for their financial leverage ratios and the interest rates they pay on debt. Each has $27 million in invested capital, has $3.5 million of EBIT, and is in the 21% federal-plus-state tax bracket. Both firms are small, with average sales of $22 million or less during the past three years, so both are exempt from the interest deduction limitation. Firm B, however, has a debt-to-capital ratio of 40% and pays 9% interest on its debt, whereas A has a 28% debt-to-capital ratio and pays only 11% interest on its debt. c. The finance officer is considering raising Company A's debt-to-capital ratio from 50%. Calculate the new ROE and compare it