Firms hl and ll are identical except for their financial leverage ratios and the interest rates they pay on debt. each has $20 million in invested capital, has $3 million of ebit, and is in the 25% federal-plus-state tax bracket. firm hl, however, has a debt-to-capital ratio of 55% and pays 12% interest on its debt, whereas ll has a 30% debt-to-capital ratio and pays only 8% interest on its debt. neither firm uses preferred stock in its capital structure. calculate the return on invested capital (roic) for each firm. round your answers to two decimal places.
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