Unformatted text preview: (ROIC) for each firm. Round your answers to two decimal places. ROIC for firm LL is ROIC for firm HL IS b. Calculate the rate of return on equity (ROE) for each firm. Round your answers to two decimal places. ROE for firm LLIS ROE for firm HL is c. Observing that HL has a higher ROE, LL'S treasurer is thinking of raising the debt-to-capital ratio from 30% to 60% even though that would increase LL'S interest rate on all debt to 15%. Calculate the new ROE for LL. Round your answer to two decimal places....
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- Spring '17