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 $550,000. The firm has no plans to use preferred stock, and total assets equal total invested capital. Management projects an EBIT of $836,000 on sales of $11,000,000, and it expects to have a total assets turnover ratio of 1.8. 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.

__?__%

The Stewart Company has $2,065,000 in current assets and $908,600 in current liabilities. Its initial inventory level is $557,550, and it will raise funds as additional notes payable and use them to increase inventory. How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.0? Round your answer to the nearest dollar.

$ __?__

An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 4% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent.

Present value:$__?__

Future value:$__?__