What is the expected return on the equity

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Reference no: EM132921714

Carla Vista Resources Company has a WACC of 11.8 percent, and it is subject to a 35 percent marginal tax rate. Carla Vista has $390 million of debt outstanding at an interest rate of 12 percent and $800 million of equity (at market value) outstanding. What is the expected return on the equity with this capital structure? (Round answer to 2 decimal places, e.g. 17.54%.)

Reference no: EM132921714

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