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Pacific Packaging's ROE last year was only 5%, but its management has developed a new operating plan that calls for a debt-tocapital ratio of 60%,

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Pacific Packaging's ROE last year was only 5%, but its management has developed a new operating plan that calls for a debt-tocapital ratio of 60%, which will result in annual interest charges of $186,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $594,000 on sales of $6,000,000, and it expects to have a total assets turnover ratio of 2.9. 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 calculathis. Round your answer to two decimal places

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