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Osato Chemicals Inc. is considering a project that will require $650,000 in assets. The project will be financed with 100% equity. The company faces a
Osato Chemicals Inc. is considering a project that will require $650,000 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 $140,000? o 10.5% o 14.7% O 14.0% o 9.8% Determine what the project's ROE will be if its EBIT is - $55,000. When calculating the tax effects, assume that Osato Chemicals Inc. as a whole will have a large, positive income this year. 0-50% 0-47% 0-55% -6.6%
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