Pacific Packaging's ROE last year was only $6\%,$ but its management has developed a new operating plan that calls for a debt to capital ratio of $40\%,$ which will result in annual interest charges of $$720,000.$ The firm has no plans to use preferred stock, and total assets equal total invested capital. Management projects an EBIT of $$1,136,000,$ and it expects to have a total assets turnover ratio of $4\mathrm{.}0.$ 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.