Calculate return on equity (ROE) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and...
a-1.Calculate return on equity (ROE) under each of the three economic scenarios before any debt isissued. (Do not round intermediate calculations and enter your answers as a percent rounded to2 decimal places, e.g., 32.16.) ROERecession %Normal %Expansion % '— a-2. Calculate the percentage changes in ROE when the economy expands or enters a recession. (Anegative answer should be indicated by a minus sign. Do not round intermediate calculationsand enter your answers as a percent rounded to the nearest whole number, e.g.I 32.) % change in ROERecession % Expansion %'— Assume the firm goes through with the proposed recapitalization. b-1.Calculate the return on equity (ROE) under each of the three economic scenarios. (Do not roundintermediate calculations and enter your answers as a percent rounded to 2 decimal placesIe.g., 32.16.) ROERecession %Normal %Expansion % '— b-2.Calculate the percentage changes in ROE when the economy expands or enters a recession. (Anegative answer should be indicated by a minus sign. Do not round intermediate calculationsand enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) % change in ROERecession % Expansion %'—
Show more
