Ghost, Inc, has no debt outstanding and a total market value of $332,100. Earnings before interest and taxes, EBIT, are projected to be $48,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 18 percent higher. If there is a recession, then EBIT will be 29 percent lower. The company is considering a $170,000 debt issue with an interest rate of 7 percent. The proceeds will be used to repurchase shares of stock. There are currently 8,100 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. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.) recession. (A negative answer should be indicated by a minus sign. Do not round decimal places, e.g., 32.16.) return on equity (ROE) under each of the three economic scenarios. (Do not round decimal places, e.g. 32.16.) a-2. Calculate the percentage changes in ROE when the economy expands or enters a intermediate calculations and enter your answers as a percent rounded to 2 b-1. Assume the firm goes through with the proposed recapitalization. Calculate the intermediate calculations and enter your answers as a percent rounded to 2 b-2. Assume the firm goes through with the proposed 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.)