Question: ABC Inc. is evaluating a project that will require $750,000 in assets. The project is financed with 50% debt and 50% equity and is expected

ABC Inc. is evaluating a project that will require $750,000 in

ABC Inc. is evaluating a project that will require $750,000 in assets. The project is financed with 50% debt and 50% equity and is expected to generate earnings before interest and taxes of $100,000. The firm has a tax rate of 20% and pays 4% interest on the debt. What is the ROE (return on equity) for this project? a. 16.33% b. 17.05% c. 18.13% d. 19.50%

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