Kaeles, Inc. has no debt outstanding and a total market value of$90.000. Earnings before interest and taxes. EBIT, are projected to be $8900 if economic condition are normal. If there is strong expansion in the economy, then EBIT will be 24 percent higher If there is a recession, then EBIT will be 31 percent lower. The company is considering a $29.000 debt issue with an interest rate of 7 percent The proceeds will be used to repurchase shares of stock. There are currently 4, 500 shares outstanding. Assume the company has a market-to-book ratio of 1.0. a. Calculate return on equity, ROE under each of the three economic sceneries before any debt is issued, assuming not taxes. (Do not round intermediates calculations and enter your answers as a percent rounded to 2 decimal places, e-g- 32.16.) b. Calculate the percentage changes in ROE when the economy expands or enters a recession, assuming no taxes. (A negative answer should be indicated by minus sing. Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number e.g., 32) Assume the firm goes through with the proposed recapitalization and not taxes. c. Calculate return on equity, ROE, under each of the three economic scenarios after the recapitalization. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.32.16.) d. Calculate the percentage changes in ROE for economic expansion and recession. (A negative answer should be indicated by a minus sign. Do not intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Assume the firm has a tax rate of 40 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, e.g. 32.16.)