What impact would there be if the government raised the corporate tax rate from 21% to 28% on the Return on Common Equity (ROCE) for a firm with a net income of 208,000, preferred dividends of 12% of net income, beginning of year common equity of 1.2M and end of year common equity of 1.25M?

Once you determine the ROCE, explain whether you believe raising or not raising taxes would be beneficial.