how do you calculate ROE with debt and equity? Please see this question below. Newtown Propane is
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how do you calculate ROE with debt and equity? Please see this question below.
Newtown Propane is considering financing the project with 50% debt and 50% equity. The interest rate on the company's debt will be 10%. What will the project's ROE be if it produces an EBIT of $160,000?
What will be the project's ROE if it produces an EBIT of -$60,000 and finances 50% of the project with equity and 50% with debt? When calculating the tax effects, assume that Newton Propane as a whole will have a large, positive income this year.
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