Question: Macleay Farms is considering a project that will require $400,000 in assets. The projects EBIT is expected to be $70,000 and it will be financed

Macleay Farms is considering a project that will require $400,000 in assets. The projects EBIT is expected to be $70,000 and it will be financed with 40% Debt and 60% Equity. The tax rate is 40% and MacLeay can borrow at 10%. Find the companys return on equity (ROE) for this project.

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