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Westem Gas a Electric Co. is a smoll compory and is considering a project that will require $700,000 in assets. The project will be financed

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Westem Gas a Electric Co. is a smoll compory and is considering a project that will require $700,000 in assets. The project will be financed with 100% equity. The company faces a tax rote of 25%. What will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and (axes) of $145,000 ? 15.54%10.83%13.21%9.32% Determine what the project's ROE wit be if its EBIT is $50,000. When calculating the tax effects, assume that Western Gas 8 Electric Co, as a whole will have a large, positive income this year. 4.32%5.4%5.94%4.86% Westein Gas \& Electric Co. is alvo considering finanong the project with 50% equity and 50% debt, The interest rate on the company's debt will be 12\%. What will be the project's ROE if it preduces an EBIT of 5145,000 ? 15.45% 22.074 17.0654 25.3494 Westem Gas a Bectric Co, is also considering financing the project with 50% equity and 50% debt. The interest rate on the cormpany's debt will be 12\%. What will be the peoject's ROE if it produces an EBIT of $145,000 ? 15.45%22.07%17.66%25.38% What will bo the project's ROE if it produces an EBIT of $50,000 and it finances 50% of the project with equity and 50% with debt? When calculating the tax effects, aswme thot Westem Gas a Electric Co, as a whole will have a large, posative income this year. 23.65%. 17.74% 20.70% 19.71% The use of financial leverage nisk borne by stockholders. The greater the firm's chance of bankruptcy, the probability of a large loss, and consequently

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