What is the expected return on the equity

Reference no: EM13264901

Backwards Resources has a WACC of 14.1 percent, and it is subject to a 35 percent marginal tax rate. Backwards has $266 million of debt outstanding at an interest rate of 10 percent and $686 million of equity (market value) outstanding. What is the expected return on the equity with this capital structure?

Reference no: EM13264901

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