Return on equity Central City Construction (CCC) needs $1 million of assets to get started, and it expects to have a basic earning power ratio of 20 percent. CCC will own no securities, so all of its income will be operating income. If it chooses to, CCC can finance up to 50 percent of its assets with debt, which will have an 8 percent interest rate. Assuming a 40 percent tax rate on all taxable income, what is the difference between its expected ROE if CCC finances with 50 percent debt versus its expected ROE if it finances entirely with common stock