Question: ABC Corporation is considering a project that will require $250,000 in assets. The project is expected to produce an EBIT of $60,000. The project will

ABC Corporation is considering a project that will require $250,000 in assets. The project is expected to produce an EBIT of $60,000. The project will be financed with 100% equity. Common equity outstanding will be 20,000 shares. The company faces a tax rate of 35%.

Using the preceding information, what will ABC Corporation's return on equity (ROE) be for this project?

ABC Corporation's earnings per share (EPS) will be _______, if it finances this project with 100% equity.

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