The Neal Company wants to estimate next year's return on equity ROE under different financial leverage ratios. Neal's total capital is $ million, it currently uses only common equity, it has no future plans
to use preferred stock in its capital structure, and its federalplusstate tax rate is The CFO has estimated next year's EBIT for three possible states of the world: $ million with a probability, $
million with a probability, and $ million with a probability. Calculate Neal's expected ROE, standard deviation, and coefficient of variation for each of the following debttocapital ratios. Do not round
intermediate calculations. Round your answers to two decimal places at the end of the calculations.
DebtCapital ratio is
DebtCapital ratio is interest rate is
DebtCapital ratio is interest rate is
DebtCapital ratio is interest rate is
