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Western Gas & Electric Co. is also considering financing the project with 50% equity and 50% debt. The interest rate on the company's debt
Western Gas & Electric Co. is also considering financing the project with 50% equity and 50% debt. The interest rate on the company's debt will be 10%. What will be the project's ROE if it produces an EBIT of $140,000? O 27.50% 19.25% 22.00% 31.62% What will be the project's ROE if it produces an EBIT of -$40,000 and it finances 50% of the project with equity and 50% with debt? When calculating the tax effects, assume that Western Gas & Electric Co. as a whole will have a large, positive income this year. O-18.37% O-15.75% -21.00% -17.50%
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