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Pacific Packaging's ROE last year was only 5%, but its management has developed a new operating plan that calls for a debt-to-capital ratio of 40%, which will result in annual interest charges of $602,000. The firm has no plans to use preferred stock and total assets equal total invested caphtal, Management projects an EBIT of $1,162,000 on sales of $14,000,000, and it expects to have a total assets turnover ratio of 2.7. Under these condiijens, the tax rate will be 25%. If the changes are made, what will be the company's return on equity? Do not round intermediate caleulations. Round your answar to two decimal places