please right out answer and show your work:)

please show your work and write it out:) thank you!!

3. Brandt-Leland & Company's ROE last year was only 5%; but its management team has developed a new operating plan that calls for a debt ratio of 55%. This new debt ratio will result in annual interest charges of $270,000. Management projects an EBIT of $775,000 on sales of $7,250,000, and it expects to have a total assets turnover ratio of 2.5. The tax rate will be 25%. (5 points) a. What will be Brandt-Leland's new ROE if the above changes are implemented? And what is the change in Brandt-Leland's ROE as a result of this increase in debt? b. In order to achieve a higher ROE above, Brandt-Leland took on a debt ratio of 55%, which was higher than the firm previously had. Given what you have learned, is this a good idea? Why or why not? 2. Tim Whatley is saving so he can take a year off form his hectic schedule and tour the world. Tim Whatley thinks that he will need $45,000 to be able to go on such an adventure and he plans on saving money over the next six years to enable him to do so. Tim is planning on saving the following amounts: (5 points) $4,500 per year for the next 2 years $4,900 per year for years 3-4 $5,500 per year for years 5-6 a. How much will Tim have saved in 6 years if he is able to earn a return of 5% annually? b. Is Tim going to have enough to tour the world? 3. Brandt-Leland & Company's ROE last year was only 5%; but its management team has developed a new operating plan that calls for a debt ratio of 55%. This new debt ratio will result in annual interest charges of $270,000. Management projects an EBIT of $775,000 on sales of $7,250,000, and it expects to have a total assets turnover ratio of 2.5. The tax rate will be 25%. (5 points) a. What will be Brandt-Leland's new ROE if the above changes are implemented? And what is the change in Brandt-Leland's ROE as a result of this increase in debt? b. In order to achieve a higher ROE above, Brandt-Leland took on a debt ratio of 55%, which was higher than the firm previously had. Given what you have learned, is this a good idea? Why or why not