Seattle Health Plans currently uses zero-debt financing. Its operating profit is $2 million, and it pays taxes at a 24 percent rate. It has $13 million in assets and, because it is all-equity financed, $13 million in equity. Suppose the firm is considering replacing 56 percent of its equity financing with debt financing that bears an interest rate of 7 percent. What impact would the new capital structure have on the firm's ROE (return on equity)?