Wizard Co. is also considering financing 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 fit produces an EBIT of $145,000? BE 34.50% 2 37.95% 39.67% F 36.23% an What will be the project's ROE if it produces an EBIT - 300,000 and it finances 50% of the project with equity and 50% with debt? When calculating the tax effects, assume that wizard Co. as a whole will have a large positive income this year -25.207 -21.00 26.25% -27.30% The use of financial leverage the expected ROE risk borne by stockholders. The greater the firm's chance of bankruptcy, the is more likely to be debt in an effort to boost profits the probability of a large loss, and consequently its optimal debt ratio will be the manager