Money, Inc., has no debt outstanding and a total market value of $150,000. Earnings before interest and taxes, EBIT, are projected to be $28,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 25 percent lower Money is considering a $60,000 debt issue with an interest rate of 7 percent. The proceeds will be used to repurchase shares of stock. There are currently 10,000 shares outstanding. Ignore taxes for questions a and b. Assume the company has a market-to-book ratio of 1.0 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 round your final answers to 2 decimal places. (e.g., 32.16 ROE. Recession Normal Expansion a-2. Calculate the percentage changes in ROE when the economy expands or enters a recession Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) change in ROE Recession Expansion Assume the firm goes through with the proposed recapitalization b-1. Calculate the return on equity (ROE) under each of the three economic scenarios. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16) ROE Recession Normal Expansion b-2. Calculate the percentage changes in ROE when the economy expands or enters a recession Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) change in RO Recession Expansion Assume the firm has a tax rate of 35 percent c-1. Calculate return on equity (ROE) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) ROE Recession Normal Expansion