Tools Attempts Keep the Highest/0.5 11. Problem 4.14 (Return on Equity) eBook Problem Walk-Through Pacific Packaging's ROE last year was only 3%, but its management has developed a new operating plan that calls for a debt-to-of 45%, which will result in annual Interest charges of $155,000. The firm has no plans to use preferred stock, and total assets equal total invested capital, Management prajects an EBIT of $375,000 on sales of $5,000,000, and it expects to have a total assets turnover ratio of 4.0. Under these conditions, the tax rate will be 25%. If the changes are made, what the company's retum on equity? Do not round intermediate calculations. Round your answer to two decimal places. Grade it Now Save & Continue Continue without saving