Question: Universal Exports Inc. is considering a project that will require $550,000 in assets. The project will be financed with 100% equity. The company faces a

 Universal Exports Inc. is considering a project that will require $550,000

Universal Exports Inc. is considering a project that will require $550,000 in assets. The project will be financed with 100% equity. The company faces a tax rate of 35%, what will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and taxes) of $150,000? O 18.6% 19.5% o 14.2% Determine what the project's ROE will be if its EBIT is -$40,000. When calculating the tax effects, assume that Universal Exports Inc. as a whole will have a large, positive income this year. O-4.7% O-5.6% -4.9% -4.5% Universal Exports Inc. is also considering financing the project with 50% equity and 50% debt. The interest rate on the company's debt wi" be 12%, what will be the project's ROE if it produces an EBIT of Siso,0007 o 22.2% 27,7% o 19.4% o 30.5% what will be the project's ROE if it produces an EBIT af-$40,000 and it finances 50% of the 50% with debt? when calculating the tax effects, assume that Universal Exports Inc. as a whole positive income this year, project with equity and Q -17.3% -18.2% -20.8% -16.4%

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