Blue Wave Inc. is a satellite imaging company and had shares of common stock outstanding. At the end of X its simplified balance sheet is as follows:

Current assets

$

Accounts payable

$

Plant, property and equipment

Common Stock shares issued and outstanding

Other noncurrent assets

Retained Earnings

Total assets

$

Total liab. and shareholders\' equity

$

Blue Wave needs $ to purchase a software service at the beginning of X to enhance its imaging ability. This expense is a onetime expense. The new software is expected to increase its annual operating income before interest expense and income tax from $ to $ Blue Waves income tax rate is

Blue Wave has two options to get funding: one is to borrow the $ from Gringotts Bank at an annual interest rate of interests payable monthly and principal repayable in years. The other is to issue more common stock at $ per share. Blue Wave currently pays dividends at of common stock value.

If Blue Wave decides to issue shares of common stock at $ per share to pay for the software service, what is its return on common equity at the end of X Return on equity is the net income divided by total shareholders equity. Assume the Retained Earnings at the end of X is $

Please round your answer to decimal places.