Last year Hamdi Corp. had sales of $$500,000,$ operating costs of $$450,000,$ and year$-$end assets $($which is equal to its total invested capital$)$ of $$435,000.$ The debt$-$to$-$total$-$capital ratio was $17\%,$ the interest rate on the debt was $7\mathrm{.}5\%,$ and the firm's tax rate was $35\%.$ The new CFO wants to see how the ROE would have been affected if the firm had used a $50\%$ debt$-$to$-$total$-$capital ratio. Assume that sales, operating costs, total assets, total invested capital, and the tax rate would not be affected, but the interest rate would rise to $8\mathrm{.}0\%.$ By how much would the ROE change in response to the change in the capital structure? Do not round your intermediate calculations.

$1\mathrm{.}84\%$

$1\mathrm{.}32\%$

$1\mathrm{.}90\%$

$1\mathrm{.}74\%$

$1\mathrm{.}67\%$