Fujuta, Incorporated, has no debt outstanding and a total market value of $344,400. Earnings before interest and toxes, EBit, are: projected to be $49.000 if economic conditions are nocmal. If there is strong expanision in the economy, then EBIT will be 17 percent highec. If there is a recession, then EBIT will be 26 percent lower. The company 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 has a market-to-book ratio 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 intermediats calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16. a-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.9. 32.16. b-1. Assume the firm goes through with the proposed recapitalization. Calculate the retum 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.9. 32.16. b-2. Assume the firm goes through with the proposed recapitalization. Cakulate 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 intermedlate calculations and enter yout answers as a percent rounded to 2 decimal piaces, e.g. 32.16