Pacific Packaging's ROE last year was only $3\%,$ but its management has developed a new operating plan that calls for a debt$-$to$-$capital ratio of $55\%,$ which will result in annual interest charges of $$198,000.$ The firm has no plans to use preferred stock, and total assets equal total invested capital. Management projects an EBIT of $$444,000$ on sales of $$6,000,000,$ and it expects to have a total assets turnover ratio of $1\mathrm{.}7.$ Under these conditions, the tax rate will be $25\%.$ If the changes are made, what will be the company's return on equity? Do not round intermediate calculations. Round your answer to two decimal places