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Consider this case: Liukin Holdings Inc. is considering a project that will require $300,000 in assets. . The project is expected to produce an EBIT

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Consider this case: Liukin Holdings Inc. is considering a project that will require $300,000 in assets. . The project is expected to produce an EBIT (earnings before interest and taxes) of $50,000. The project will be financed with 100% equity. There will be 15,000 shares of common equity outstanding The company faces a tax rate of 40%. . Using the preceding information, what will be Liukin Holdings Inc.'s return on equity (ROE) for this project? 10.00% 10.50% 9.50% O 11.00% Liukin Holdings Inc.'s earnings per share (EPS) will be if it finances this project with 100% equity. Liukin Holdings Inc.'s CFO is also considering financing this project with 50% debt and 50% equity. 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 7,500 shares outstanding. What will be the ROE on this project if the company decides to finance the project with 50% debt and 50% equity? 14,72% 12.80% 9.60% 12.16% Liukin Holdings Inc.'s EPS will be if it finances this project with 50% equity and 50% debt. When a firm uses debt, this the business risk placed on common shareholders

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