Fujita, Incorporated, has no debt outstanding and a total market value of $382,50 Earnings before interest and taxes, EBIT, are projected to be $52,000 if econom conditions are normal. If there is strong expansion in the economy, then EBIT will be percent higher. If there is a recession, then EBIT will be 23 percent lower. Th company is considering a $190,000 debt issue with an interest rate of 7 percent. Th proceeds will be used to repurchase shares of stock. There are currently 8,500 share outstanding. Ignore taxes for questions (a) and (b). Assume the company has a marke to-book ratio of 1.0 and the stock price remains constant. 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 recapltalization. (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.)