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Wizard Co. is a small company and is considering a project that will require $500,000 in assets. The project will be financed with 100% equity.

Wizard Co. is a small company and is considering a project that will require $500,000 in assets. The project will be financed with 100% equity. The company faces a tax rate of 25%. What will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and taxes) of $160,000?

19.20%

25.20%

18.00%

24.00%

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