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Liukin Holdings Inc. is considering a project that will require $200,000 in assets. The project is expected to produce an EBIT (earnings before interest and

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Liukin Holdings Inc. is considering a project that will require $200,000 in assets. The project is expected to produce an EBIT (earnings before interest and taxes) of $55,000. The project will be financed with 100% equity. There will be 20,000 shares of common equity outstanding. The company faces a tax rate of 30%. Using the preceding information, what will be Liukin Holdings Inc.'s return on equity (ROE) for this project? 18.29% 19.25% 22.14% 23.10% 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 with 50% debt and 50% equity. The interest rate on the company's debt will be 10%. Because the only 50% of the project with equity, it will have only 10,000 shares outstanding. What will be the ROE on this project if the company decides to finance the project with 50% debt and 50% equity

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