Assignment: Module 1 Homework Assignment Score: 95.00% Save Submit Assignment for Grading Questions Problem 4.14 (Return on Equity) Question 18 of 20 16 Check My Work (1 remaining) 17. 18. 3 eBook Problem Walk-Through 19. 20. Pacific Packaging's ROE last year was only 6%, but its management has developed a new operating plan that calls for a debt-to-capital ratio of 45%, which will result in annual interest charges of $663,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $1,649,000 on sales of $17,000,000, and it expects to have a total assets turnover ratio of 3.5. Under these conditions, the tax rate will be 25%. If the changes are made, what will be the company's return on equity? Do not round intermediate calculations. Round your answer to two decimal places. 25.38 % Hide Feedback x Incorrect Check My Work (1 remaining) Icon Key