Suppose Happy Turtle Transportation Company is considering a project that will require $300,000 in assets.

	The company is small, so it is exempt from the interest deduction limitation under the new tax law.
	The project is expected to produce earnings before interest and taxes (EBIT) of $50,000.
	Common equity outstanding will be 20,000 shares.
	The company incurs a tax rate of 25%.

If the project is financed using 100% equity capital, then Happy Turtle Transportation Companys return on equity (ROE) on the project will be . In addition, Happy Turtles earnings per share (EPS) will be .