Assume the firm has a tax rate of 25 percent. c-1. Calculate return on equity (ROE) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. Calculate the percentage changes in ROE when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-3. Calculate the return on equity (ROE) under each of the three economic scenarios assuming the firm goes through with the recapitalization. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-4. Given the recapitalization, calculate the percentage changes in ROE when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. Recession ROE c-1. Normal ROE c-1. Expansion ROE % % % c-2. Recession percentage change in ROE -30.00 % c-2. Expansion percentage change in ROE 19.00 % c-3. Recession ROE % c-3. Normal ROE % c-3. Expansion ROE % c-4. Recession percentage change in ROE c-4. Expansion percentage change in ROE -38.01 % 24.07 %