Sombra Corp. is also considering financing the project with 50% equity and 50% debt. The...
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Sombra Corp. is also considering financing the project with 50% equity and 50% debt. The interest rate on the companys debt will be 12%. What will be the projects ROE if it produces an EBIT of $140,000?
14.70%
15.75%
22.05%
21.00%
What will be the projects ROE if it produces an EBIT of $40,000 and it finances 50% of the project with equity and 50% with debt? When calculating the tax effects, assume that Sombra Corp. as a whole will have a large, positive income this year.
-15.81%
-17.57%
-16.69%
-21.96%
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