PLEASE READ BEFORE ANSWERING: This will be my third time posting this question so I apologize if you have seen it before but my commentary keeps being passed over! For our homework, there is 1 question with multiple parts. I keep missing the last question so I am not sure where my math is going wrong. I am providing the first question because it has the context of the problem but I do NOT need it answered. I already know it is 18.13% I do NOT need this first question worked out. If needed, another question in this grouping mentions, "The interest rate on the company's debt will be 11%" but I didn't think that fit for the question.

Companies that use debt in their capital structure are said to be using financial leverage. Using leverage can increase shareholder returns, but leverage also increases the risk that shareholders bear. Consider the following case: Newtown Propane is a small company and is considering a project that will require $600,000 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? 18.13% 13.60% 10.88% 14.50% 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 Newtown Propane as a whole will have a laroe, positive income this year. First blank: decrease or increase Second blank: decrease or increase Third blank: decrease or increase Fourth blank: higher or lower Fifth blank: an aggressive or a conservative