Question: eBook Problem Walk-Through Problem 4-14 RETURN ON EQUITY Pacific Packaging's Roe last year was only 2%; but its management has developed a new operating plan

last year was only 2%; but its management has developed a new

operating plan that calls for a debt-to-capital ratio of 55%, which will

result in annual interest charges of $360,000. The firm has no plans

eBook Problem Walk-Through Problem 4-14 RETURN ON EQUITY Pacific Packaging's Roe last year was only 2%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 55%, which will result in annual interest charges of $360,000. The firm has no plans to use preferred stock and total assets equal total Invested capital. Management projects an EBIT of $930,000 on sales of $10,000,000, and it expects to have a total assets turnover ratio of 2.4. under these conditions, the tax rate wil be 30%. 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

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