Question: Jupiter Inc. is evaluating a project that will require $500,000 in assets. The project is financed with 40% debt and 60% equity and is expected

Jupiter Inc. is evaluating a project that will require $500,000 in assets. The project is financed with 40% debt and 60% equity and is expected to generate earnings before interest and taxes of $150,000. The firm has a tax rate of 20% and pays 3% interest on the debt. What is the ROE (return on equity) for this project?

23.04%
25.07%
38.40%
28.80%

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