The project requires $850,000 in assets and will be 100% equity financed. If EBIT is $180,000 and the tax rate is 30%, what is ROE?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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What is Roe ?

The project requires $850,000 in assets and will be
100% equity financed. If EBIT is $180,000 and the
tax rate is 30%, what is ROE?
Transcribed Image Text:The project requires $850,000 in assets and will be 100% equity financed. If EBIT is $180,000 and the tax rate is 30%, what is ROE?
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