Ziff Corp. is considering a project that will require $700,000 in assets. The project will be financed with 100% equity. The company faces a tax rate of 30%. what will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and taxes) of $160,000? 17.6% 11.2% 16.0% 16.8% Determine what the project's ROE will be if its EBIT is -$50,000. when calculating the tax effects, assume that ziff Corp, as a whole will have a large, positive income this year -6.0% -4.3% -5.0% -5.3% ziff Corp. is also considering financing the project with 50% equity and 50% debt. The interest rate on the compa debt will be 10%. what will be the project's ROE if it produces an EBIT of $160,000? 25.0% 27.5% 28.8% 23.8% 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 Ziff Corp. as a whole will have a large, positive income this year. -17.0% -17.9% -15.3% -20.4% The use of financial leverage _____ the expected ROE, _____ the probability of a large loss, and consequently _____ the risk borne by stockholders. The greater the firm's chance of bankruptcy, the _____ its optimal debt ratio will be. _____ manager is more likely to use debt in an effort to boost profits