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Pacific Packaging's ROE last year was only $5\%,$ but its management has developed a new operating plan that calls for a debt$-$to$-$capital ratio of $45\%,$ which will result in annual interest charges of $$490,000.$ The firm has no plans to use preferred stock, and total assets equal total invested capital. Management projects an EBIT of $$1,000,000$ on sales of $$10,000,000$ and it expects to have a total assets turnover ratio of $3\mathrm{.}6.$ Under these conditions, the tax rate will be $25\%.$ If the changes are made, what will be the company's return on equity? Do not round intermediate calculations. Round your answer to two decimal places.