Pacific Packaging's ROE last year was only 5\%, but its management has developed a new operating plan that calls for a debe-to-capital ratio of 40\%, which will result in annual interest charges of $200,000. The firm has no plans to use preferred stock, and total assets equal total invested capital, Mansgement projects an EBrT of $352,000 on sales of $4,000,000, and it expects to have a total assets furnover ratio of 2.1 . 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 intermed ate calculations. Round your answer to two decimal places