Fujto, Incorporated, has no debt outstanding and a total market value of $344.400. Earnings before interest and taxes, EBIT, are projected to be $49.000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 17 percent highet. If there is a recession, then EBIT will be 26 percent lower. The compony is considering a $175,000 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 8,200 shares outstanding. Ignore taxes for questions (a) and (b). Assume the company hos a market-to-book rotio of 1.0 and the stock price remains constant. a-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., 32.16. a-2. Colculate 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., 32.16. b-1. Assume the firm goes through with the proposed recapitalization. Calculate the return on equity, ROE, under each of the three. economic scenarios. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b-2. Assume the firm goes through with the proposed recopitolization. Calculate the percentoge 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 persent rounded to 2 decimal places, e.g., 32.16