Determine the roe if the project is financed

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Question: Myrtle Propane is considering a project that will require $700,000 in assets. Determine the ROE if the project is financed with 100% equity and if they decide to finance it with 50% equity and 50% debt (cost of debt is 10%). The firm has a tax rate of 30% and the project is expected to produce an EBIT of $160,000. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132009742

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