Osato Chemicals Inc. is a small company and is considering a project that will require $500,000 in assets. The project will be financed with 100% equity. The company faces a tax rate of 25%. What will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and taxes) of $145,000 ? 22.84% 21.75% 14.14% 15.23% Determine what the project's ROE will be if its EBIT is $45,000. When calculating the tax effects, assume that Osato Chemicals Inc. as a whole will have a large, positive income this year. 5.69% 6.03% 7.70% 6.7% 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 12%. What will be the project's ROE if it produces an EBIT of $145,000 ? 36.23%34.50%25.88%27.60% What will be the project's ROE if it produces an EBIT of $45,000 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. 21.37% 28.12% 23.62% 22.50% The use of financial leverage the expected ROE, the probability of a large loss, and consequently the is more likely to use debt in an effort to boost profits