what will be the project's ROE if it produces an EBIT of-$45,000 and it finances 50% of the project with equity and 50% with debt? when calculating the tax effects, assume that Sombra Corp. as a whole will have a large, positive income this year. -23.7% -18.2% -20.9% -21.8% the expected ROE, the probability of a large loss, and The use of financial leverage consequently increases by stockholders. The greater the firm's chance of bankruptcy, the its optimal debt r decreases manager is more likely to use debt in an effort to boost profits. O Type here to search