Your firm currently unlevered $($no debt$)$ and has an equity value of $$20$ million. There are $800,000$ shares outstanding and the cost of debt is $7\%.$ You are considering to restructure by issuing $$4$ million of debt to buy back stock. EBIT is projected to be $$1$m under normal market conditions. If there is a economic boom, EBIT is expected to be $30\%$ higher. If there is an economic recession, EBIT is expected to be $40\%$ lower. Ignore taxes.

If the firm does not restructure, calculate the ROE if there is an economic boom.