What is the expected return on the equity

Reference no: EM13264720

Backwards Resources has a WACC of 12.9 percent, and it is subject to a 36 percent marginal tax rate. Backwards has $305 million of debt outstanding at an interest rate of 9 percent and $818 million of equity (market value) outstanding. What is the expected return on the equity with this capital structure?

Reference no: EM13264720

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