LTA Ltd has followed a very conservative capital structure policy and the company has total assets (including current assets) of R600m and no interest-bearing debt. LTA has non-interest-bearing current liabilities (accounts payable and accrued expenses) of R100m. The company is considering borrowing R180m in order to perform a share-buy back from its shareholders. Operating earnings are expected to be R60m for the next year. The interest rate on the loan is 10% and the tax rate is 28%. Which of the following will represent the company's return on equity (ROE) if the company does not borrow nor pays a special dividend (1) in contrast to the expected ROE if the company does borrow and pays a special dividend (2)?