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Consider the following case: Sombra Corp. is a small company and is considering a project...

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Finance

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Consider the following case: Sombra Corp. is a small company and is considering a project that will require $600,000 in assets. The project will be financed with 100% equity. The company faces a tax rate of 25%. What will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and taxes) of $150,0002 O 11.25% O 15.94% O 15.00% 18.75% Determine what the project's ROE will be if its EBIT is -$60,000. When calculating the tax effects, assume that Sombra Corp. as a whole will have a large, positive income this year. 0 -6.00% 0 -7.5% -8.25% -7.87%

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