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Control Inc., has no debt outstanding and a total market valueof $100,000. EBIT is projected to be $6,000 if economic conditionsare normal. If there is a strong expansion in the economy, thenEBIT will be 30% higher. If there is a recession, then EBIT will be60% lower. The firm is considering a $40,000 debt issue with 5%interest rate. The proceeds will be used to repurchase shares ofstock. There are currently 2,500 shares outstanding. Ignore taxesfor this problem.Suppose the firm in problem 1 has a market-to-book ratio of 1(i.e., MV= TE= $100,000).a- Calculate ROE under each of the three economic scenariosbefore any debt is issued. Also calculate the percentage changes inROE for economic expansion and recession, assuming no taxes. (2.4%;6%; 7.8%; -60%; 30%)b- Repeat part (a) assuming the firm goes through with theproposed capitalization. (0.67%; 6.67%; 9.67%; -90%, 45%) c- Repeatparts (a) and (b) of this problem assuming the firm has a tax rateof 35%. (No debt: 1.56%; 3.9%; 5.07%; -60%, 30%; with debt: 0.43%;4.33%; 6.28%; -90%, 45%)no excel, please show formulas. I will rate