RAK. Inc., has no debt outstanding and a total market value of $240,000. Earnings before interest and taxes, EBIT, are projected to be $36,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession. then EBIT will be 25 percent lower. RAK is considering a $155,000 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 6,000 shares outstanding. Ignore taxes for questions a and b. Assume the company has a market-to-book ratio of 1.0. Calculate return on equity (ROE) under each of the three economic scenarios before any debt is issued. (Do no calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the percentage changes in ROE when the economy expands or enters a recession. (Negative indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent places, e.g.. 32.16.) Calculate the return on equity (ROE) under each of the three economic scenarios. (Do not round intermediate your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the percentage changes in ROE when the economy expands or enters a recession. (Negative indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent places, e.g.. 32.16.) Calculate return on equity (ROE) under each of the three economic scenarios before any debt is issued. (Do not calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the percentage changes in ROE when the economy expands or enters a recession. (Negative indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent places, e.g., 32.16.) Calculate the return on equity (ROE) under each of the three economic scenarios assuming the firm recapitalization. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 32.16.) Given the recapitalization, calculate the percentage changes in ROE when the economy expands or enters a amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16))