Daggy Corporation's ROE last year was only 5 percent, but its management has developed a new operating plan designed to improve things. The new plan calls for a total debt ration of 60 percent, which will result in interest expenses of $8000 per year. Management projects earnings before interest and taxes (EBIT) of $26,000 on sales of $240,000 and it expects to have a total assets turnover of 2.0. Under these conditions, the average tax rate will 40 percent. If the changes are made, what return on equity (using the DuPont Identity) will Daggy earn?

I will need to see the answer and how you arrived at your answer.