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S. Problem 4.16 (Return on Equity) Book Commonwealth Construction (CC) needs 32 milion of assets...

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S. Problem 4.16 (Return on Equity) Book Commonwealth Construction (CC) needs 32 milion of assets to get started and it expects to have a basic caming power ratio of 15%. CC will own no securities, all of its income will It operating income of its choses, CC can finance up to 30% of its with debt, which will have interest rate if it chooses to use debt, the firm will finance using only debt and common equity, so no preferred stock will be used. Asuming a 25 tax rate on taxable income, what is the difference between CC's expected ROER finances these assets with 30% debt versus is expected Refit finances these assets entirely with common stock round your answer to two decimal places percentage points . ed

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