Consider the following case of Purple Panda Importers: Suppose Purple Panda Importers is considering a project that will require $$200,000$ in assets. $$ The company is small, so it is exempt from the interest deduction limitation under the new tax law. $$ The project is expected to produce earnings before interest and taxes $($EBIT$)$ of $$55,000.$ Common equity outstanding will be $30,000$ shares. $$ The company incurs a tax rate of $25\%.$ If the project is financed using $100\%$ equity capital, then Purple Panda Importers$$s return on equity $($ROE$)$ on the project will be $.$ In addition, Purple Panda$$s earnings per share $($EPS$)$ will be $.$ Alternatively, Purple Panda Importers$$s CFO is also considering financing the project with $50\%$ debt and $50\%$ equity capital. The interest rate on the company$$s debt will be $12\%.$ Because the company will finance only $50\%$ of the project with equity, it will have only $15,000$ shares outstanding. Purple Panda Importers$$s ROE and the company$$s EPS will be if management decides to finance the project with $50\%$ debt and $50\%$ equity. Typically, using financial leverage will a project$$s expected ROE.