Consider this case: Suppose Free Spirit Industries Inc. is considering a project that will require $400,000 in assets. The project is expected to produce an EBIT (earnings before interest and taxes) of $45,000. The project will be financed with 100% equity. Common equity outstanding will be 25,000 shares. The company faces a tax rate of 35%. Using the preceding information, what will Free Spirit Industries Inc.'s return on equity (ROE) be for this project? 8.04% 7.68% 6.94% 7.31% Free Spirit Industries Inc.'s earnings per share (EPS) will be ____ if it finances this project with 100% equity. Free Spirit Industries 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 11%. Because the company will finance only 50% of the project with equity, it will have only 12, 500 shares outstanding. What will the ROE be on this project if the company decides to finance the project with 50% debt and 50% equity? 7.85% 7.48% 9.35% 5.61% Free Spirit Industries Inc.'s EPS will be ____ if it finances this project with 50% equity and 50% debt. As a firm uses more debt in its capital structure, lenders will usually ______ the interest rate charged