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NOTE: I am unsure of the answer chosen for the first two.... Please help with ALL sections of the problem, thank you. Also, last section
NOTE: I am unsure of the answer chosen for the first two.... Please help with ALL sections of the problem, thank you. Also, last section is NOT mult. choice.. there can be more than one checked
osato Chemicals Inc. is considering a project that will require $700,000 in assets. The project will be financed with 100% equity. The company faces a tax rate of 35%. What will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and taxes) of $150,000? 13.9% o 15.3% O 11.8% O Determine what the project's ROE will be if its EBIT is -$60,000. When calculating the tax effects, assume that Osato Chemicals Inc. as a whole will have a large, positive income this year -5.3% O -6.4% O -4.8% O -5.6% osato Chemicals Inc. 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 $150,000? 20.7% O 21.7% O 19.7% 22.8% O What will be the project's ROE if it produces an EBIT of $60,000 and it finances 50% of the project with equity and 50% with debt? When calculating the tax effects, assume that Osato Chemicals Inc. as a whole will have a large, positive income this year. 8.3% 6.5% 7.4% 9.2%Step by Step Solution
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