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%

Answer rating: 100% (QA)

Investment required 500000 40 Debt and 60 Equity EBIT ... View the full answer