ROE and Leverage [L01 , 2] Suppose the company in Problem 1 has a market to book ratio of 1.0. a. Calculate return on equity (ROE) under each of the three economic senarios before any debt is issued. Also calculate the percentage changes in ROE for economic expansio and recession, assuming no taxes. b. Repeat part (a) assuming the firm goes thorugh with the proposed recapitalization. c. Repeat parts (a) and (b) of this problem assuming the firm has a tax rate of 35 percent.