5. Midwest Packaging's ROE last year was only 5%; but its management has developed a new op-erating plan that calls for a debt-to-assets ratio of 60%, which will result in annual interest charges of $120,000. The firm has no plans to use preferred stock. Management projects an EBIT of $332,000 on sales of $4,000,000, and it expects to have a total assets turnover ratio of 2.1. Under these conditions, the tax rate will be 40%. If the changes are made, what will be the company's return on equity? Round your answer to two decimal places. %

6. Fontaine Inc. recently reported net income of $7 million. It has 560,000 shares of common stock, which currently trades at $25 a share. Fontaine continues to expand and anticipates that 1 year from now, its net income will be $11.9 million. Over the next year it also anticipates issuing an additional 84,000 shares of stock so that 1 year from now it will have 644,000 shares of common stock. Assuming Fontaine's price/earnings ratio remains at its current level, what will be its stock price 1 year from now? Round your answer to the nearest cent. $