Commonwealth Construction (CC) needs $3 million of assets to get started, and it expects to have a basic earning power ratio of 25%

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Commonwealth Construction (CC) needs $3 million of assets to get started, and it expects to have a basic earning power ratio of 25%. CC will own no securities, so all of its income will be operating Income. If it so chooses, cc can finance up to 60% of its assets with debt, which will have an 10% 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. Assuming a 40% tax rate on all taxable income, what is the difference between CC's expected Roe if it finances these assets with 60% debt versus its expected ROE if it finances these assets entirely with common stock round your answer to two decimal place