a) Roger Inc. is an all-equity financed company, which is valued at $250 million. The firms shares are expected to produce a return of 15%. The company has decided to modify its capital structure to capture the tax benefits of debt. The plan is to have a target debt/equity ratio of 25%. The company has been told that any borrowings made by them will attract a rate of 7%. Calculate the return on equity of Roger Inc. before and after the restructuring