Newtown Propane is also considering financing the project with $50\%$ equity and $50\%$ debt. The interest rate on the company$$s debt will be $10\%.$ What will be the project$$s ROE if it produces an EBIT of $$140,000?$

A$.20\mathrm{.}9\%$

B$.22\mathrm{.}0\%$

C$.15\mathrm{.}4\%$

D$.18\mathrm{.}7\%$

What will be the project$$s ROE if it produces an EBIT of $$$$50,000$ and it finances $50\%$ of the project with equity and $50\%$ with debt? When calculating the tax effects, assume that Newtown Propane as a whole will have a large, positive income this year.

A$.-18\mathrm{.}4\%$

B$.-17\mathrm{.}6\%$

C$.-16\mathrm{.}0\%$

D$.-14\mathrm{.}4\%$