Consider the following case: Flowers by Irene Inc. is a small company and is considering a project that will require $500,000 in assets. The project will be financed 100% and taxes) of $145,000 ? 15.23%17.40%21.75%16.31% Determine what the project's ROE will be if its EBIT is $50,000. When calculating the tax effects, assume that Flowers by Irene Inc. as a whole will have a large, positive income this year. 7.5%7.12%6.75%7.87% Flowers by Irene Inc. is also considering financing the project with 50% equity and 50% debt. The interest rate on the company's debt will be 11%. What will be the project's ROE if it produces an EBIT of $145,000? 33.49%28.20%35.25%29.96% What will be the project's ROE if it produces an EBIT of $50,000 and it finances 50% of the project with equity and 50% with debt? When calculating the tax effects, assume that Flowers by Irene Inc. as a whole will have a large, positive income this year. 23.25%24.41%25.58%26.74% LinkSave Corp. currently is financed with 10% debt and 90% equity. However, its CFO has proposed that the firm issue new long-term debt and he believes this move will increase the firm's stock price. If LinkSave Corp. proceeds with the recapitalization, which of the following items are also likely to increase? Check all that apply. Return on assets (ROA) Cost of equity (rs) Basic earning power (BEP) Cost of debt (rd) Net income