O $365 million 4 pts Question 6 Pecos Packaging's ROE last year was only 10 percent, but its management has developed a new operating plan designed to improve profitability. The new plan calls for a total debt ratio (D/TA) of 55 percent, which will result in interest charges of $200,000 per year. Management also projects an EBIT of $1,000,000 on sales of $10,000,000, and it expects to have a total asset turnover ratio of 2.0. The firm's anticipated tax rate is 40 percent. If these changes are made, what return on equity (ROE) will the company earn? 16.9% 18.8% 23.2 21.3% 17.5% Question 7 4 pts