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Kael, Inc. has no debt outstanding and a total market value of 563.000 Earnings before interest and tax, EDIT are projected to be 3.600 if

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Kael, Inc. has no debt outstanding and a total market value of 563.000 Earnings before interest and tax, EDIT are projected to be 3.600 if coon conditions are normal where is strong expansion in the economy, then EBIT will be 21 percent higher there is a recession, the EBIT will be 34 percentower. The company is considering a 21,300 an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 4,200 shares outstanding Assume the company has a market of 1.0 a. Calculate return on equity, ROE, under each of the three economie scenarios before any debt is issued assuming no toxen. (Do not round intermediate calculations and your answers as a percent rounded to 2 decimal places, ... 32.16.) ROE Recension Normal Expansion b. Calculate the percentage changes in ROE when the economy expands or enters a recession, assuming notes (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number... 32.1 ARDE Recension Expansion Assume the firm goes through with the proposed recapitalization and no taxes c. Calculate return on equity, ROE, under each of the three economic scenarios atter the recapitalization (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, ... 32.16.) e. Calculate return on equity ROE, under each of the three economiscare the recapitalization. Do not run intermediate calculations and enter your answers percent rounded to 2 decimal places, .032.16.) ROE Recession Normal Expansion d. Calculate the percentage changes in ROE for economie expansion and recension (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, co.32.16.) SAROE Recension Expansion Assume the firm has a tax rate of 35 percent e. Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued Also, calculate the percentage changes in ROE for economic expansion and 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, 0.9-32.16.) e. Calculate return on equity, ROE, under each of the three economie sans before any Ab, ont percentage changes in Rotorsconomic expansion and recension. A negative answer should be indicated by a minus sign. Do not found to calculations and enter your answers as a percent rounded to decimal places ... 32.100 ROE Recession Normal Expansion SAROE Recession Expansion 1. Calculata return on equity. ROE, under ench of the three economiscanos after the recapitalization. Also calculate the percentage changes in ROE for economic expansion and recession assuming the firm goes through with the proposed recapitalization (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... 32.16.) ROE Recession Normal Expansion SAROE Recession Ei 4:47 PM

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