ABC Inc. is evaluating a project that will require $500,000 in assets. The project is...
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ABC Inc. is evaluating a project that will require $500,000 in assets. The project is financed with equity only and is expected to generate earnings before interest and taxes of $90,000. The firm has a tax rate of 16%. What is the ROE (return on equity) for this project?
| 16% | ||
| 5% | ||
| 18% | ||
| 15.12% |
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