Fujita, Incorporated, has no debt outstanding and a total market value of $$220,100.$Earnings before interest and taxes, EBIT, are projected to be $$38,000$ if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be $12$ percent higher. If there is a recession, then EBIT will be $23$ percent lower. The company is considering a $$120,000$ debt issue with an interest rate of $5$ percent. Theproceeds will be used to repurchase shares of stock. There are currently $7,100$ shares outstanding. Ignore taxes for questions $($a$)$ and $($b$).$ Assume the company has a market$-$to$-$book ratio of $1\mathrm{.}0$ and the stock price remains constant.a$-1.$ Calculate return on equity $($ROE$)$ under each of the three economic scenarios beforeany debt is issued. $($Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$a$-2.$ 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 roundintermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$b$-1.$ Assume the firm goes through with the proposed recapitalization. Calculate thereturn on equity $($ROE$)$ under each of the three economic scenarios. $($Do not roundintermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$b$-2.$ Assume the firm goes through with the proposed recapitalization. Calculate thepercentage changes in ROE when the economy expands or enters a recession. $($A negative answer should be indicated by a minus sign. Do not round intermediatecalculations and enter your answers as a percent rounded to $2$ decimal places,e$.$g$.,32\mathrm{.}16.)$