Question 1 (1 point) A firm currently has $1,000,000 in total capital with 20% Debt and no preferred stock. The firm would like to know by how much will their ROE change if they recapitalize their $1,000,000 total capital by increasing debt to 35% and assuming everything else stays the same. They pay 8% interest on debt, have a $250,000 EBIT, and have a 34% tax rate. How much will their ROE change if they change their capital structure to 35% debt? -0.99% -3.24% 3.24% 0.99%