Firms HD and LD are identical except for their use of debt and theinterests rates they pay-- HD has more debt and thus must pay ahigher rate interest. Based on the data below, how much higher orlower will HD's ROE be versus that of LD, i.e., what is ROE HD andROE LD? . . Aplicable to both firms. Capital $3,000,000. EBIT$5000,000. Tax Rate 35%. . Firm HD's data Wd 70%. Interest rate12%. . Firm LD's data. . Wd 20%. Interest rate 10%. . Answers. A)5.41%. B) 5.69%. C) 5.99%. D) 6.37%. E) 6.61%