Fujita, Incorporated, has no debt outstanding and a total market value of $$436,100.$ Earnings before interest and taxes, EBIT, are projected to be $$56,000$ if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be $15$ percent higher. If there is a recession, then EBIT will be $20$ percent lower. The company is considering a $$210,000$ debt issue with an interest rate of $7$ percent. The proceeds will be used to repurchase shares outstanding Answer is not complete.

$\backslash$table$[[$c$-1.$ Recession ROE,,$\%],[$Normal ROE,,$\%],[$Expansion ROE,,$\%],[$c$-2.$ Recession percentage change in ROE,$-27\mathrm{.}24\backslash$times $,\%],[$Expansion percentage change in ROE,$20\mathrm{.}38\backslash$times $,\%],[$c$-3.$ Recession ROE,$6\mathrm{.}89\backslash$times $,\%],[$Normal ROE,$9\mathrm{.}47\backslash$times $,\%],[$Expansion ROE,$9\mathrm{.}47\backslash$times $,\%],[$c$-4.$ Recession percentage change in ROE,$-27\mathrm{.}24,\%],[$Expansion percentage change in ROE,$20\mathrm{.}38,\%]]$

Assume the firm has a tax rate of $24$ percent.

c$-1.$ Calculate return on equity $($ROE$)$ under each of the three economic scenarios before any debt is issued.

Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

c$-2.$ Calculate the percentage changes in ROE when the economy expands or enters a recession.

Note: 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$.,32\mathrm{.}16.$

c$-3.$ Calculate the return on equity $($ROE$)$ under each of the three economic scenarios assuming the firm goes through with the recapitalization.

Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

c$-4.$ Given the recapitalization, calculate the percentage changes in ROE when the economy expands or enters a recession.

Note: 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$.,32\mathrm{.}16.$