Raster Imaging Company has a new management team that has developed an operating plan to improve upon

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Raster Imaging Company has a new management team that has developed an operating plan to improve upon last year's ROE. The new plan would place the debt ratio at 55 percent, which will result in interest charges of $\$ 7,000$ per year. EBIT is projected to be $\$ 25,000$ on sales of $\$ 270,000$, and it expects to have a total assets turnover ratio of 3.0. The average tax rate will be 40 percent. What does Raster Imaging expect return on equity to be following the changes?

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