Sonbra Corp. is also considering financing the project with 50% equity and 50% debt. The interest rate on the company's debt will be 13%. What will be the project's ROE if it produces an EBIT of $155,000?
26.02%
24.72%
28.62%
18.21%
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 Sonbra Corp. as a whole will have a large, positive income this year.
-19.16%
A
-24.48%
-21.29%
-27.68%