The project requires $850,000 in assets and will be 100% equity financed. If EBIT is $178,000 and the tax rate is 28%, what is ROE?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 21P: Your division is considering two investment projects, each of which requires an up-front expenditure...
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General accounting

The project requires $850,000 in assets and will be 100%
equity financed. If EBIT is $178,000 and the tax rate is 28%,
what is ROE?
Transcribed Image Text:The project requires $850,000 in assets and will be 100% equity financed. If EBIT is $178,000 and the tax rate is 28%, what is ROE?
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