Frictional Unemployment is the unemployment resulting from transferring BETWEEN jobs.
Which of the following is an example of
Frictional Unemployment?
A. a lifeguard being out of work in December
B. an accountant being replaced with a computing system
C. a military veteran looking for a civilian job

The answer is =16.7%

Explanation:

Earnings before interest and taxes(EBIT) = $145,000

Tax rate is 25%

Therefore, the applicable tax rate on the earnings is 100% - 25% = 75%

So the Net income is 0.75 x $145,000

Net income = $108,750

The project is financed by 100percent equity and the cost is $650,000.

ROE(Return on Equity) = net income/equity

$108,750/$650,000

=16.7%