Suppose Happy Turtle Transportation Company is consldering 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 $60,000. - Common equity outstanding will be 10,000 shares. - The company incurs a tax rate of 25%. If the project is financed using 100% equity capital, then Happy Turtie Transportation Company's retum on equity (ROE) on the project will be . In addition, Happy Turtie's earnings per share (fPS) wil be Aternatively, Happy Turtle Transportation Companys cFo is also considering financing the project with 50% debt and 50% equity capital. The interest rate on the company's debt wil be 11%. Because the company will finance only 50 bh of the prolect with equity, it will have only 5,000 shares outstanding. Happy Turtle Transportation Company's ROE and the company's ePS will be if management decides to finance the project with 50% debt and 50% equity. When a firm uses debt financing, the business risk exposure for the firm's common shareholders will