Newtown Propane is also considering financing the project with 50 % equity and 50 % debt. The interest rate on the company's debt will be 11 %. What will be the project's ROE if it produces an EBIT of $160,0007 31.54% 27.24 % 22.94% 28.67% What will be the project's ROE if it produces an EBIT of -$50,000 and it finances 50 % of the project with equity and 50 % with debt? When calculating the tax effects, assume that Newtown Propane as a whole will have a large, positive income this year -19.79 % 20.78% -25.73% -22.76 % the the probability of a large loss, and consequentlyi the expected ROE The use of financial leverage manager its optimal debt ratio will be. risk borne by stockholders. The greater the firm's chance of bankruptcy, the is more likely to use debt in an effort to boost profits