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Today is 1 1 ? 2 4 , and your firm estimated an expected EBIT of $ 2 4 0 , 0 0 0 .

Today is 11?24, and your firm estimated an expected EBIT of $240,000.00 for 2024, based on total assets of $1,00,000.00, a tax rate of 40 percent, a before-tax cost of debt of 10.0 percent, and a return on equity (ROE) of 15.50 percent. Given this information, determine what the firm's expected ROE will be for 2024 if it immediately doubles the amount of debt (still at a 10.0 percent rate) and uses the proceeds to repurchase equity.
18.35%
15.69%
21.93%
20.00%
16.93%
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