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If the value of a levered firm is $8 million, what is the value of the same firm with all-equity financing? $9 million $7 million

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If the value of a levered firm is $8 million, what is the value of the same firm with all-equity financing? $9 million $7 million $6 million $8 million ABC Inc. is evaluating a project that will require $500,000 in assets. The project is financed with 50% debt and 50% equity and is expected to generate earnings before interest and taxes of $90,000. The firm has a tax rate of 16% and pays 4% interest on the debt. What is the ROE (return on equity) for this project? 26.88% 5.12% 16.00% 18.75%

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