Schweers' Co$.$ needs $$5,000,000$ of assets to get started and expects its basic earning power ratio, BEP$=$EBI$\frac{T}{T}A,$ to equal $20\%.$ All of Schweers' income will be operating income. Schweers can finance some of its assets with debt. And, it must pay $9\mathrm{.}5\%($interest$)$ on this debt. That is$,$ the Interest line on the income statement is $9\mathrm{.}5\%$ of the firm's debt. Assuming a $30\%$ tax rate, what is the firm's ROE if:

a$.8\%$ of its assets are financed with debt? $\%$

b$.83\%$ of its assets are financed with debt?

$\%$

Note: Enter your answer as a percentage with $2$ decimal places, e$.$g$.10\mathrm{.}25$ for $10\mathrm{.}25\%.$

Hint: There are multiple steps to solve this problem. We need to find NI$,$ right? So$,$ use the BEP ratio to find EBIT and then work your way down the Income Statement to get NI$...$