What is the required rate of return on the companys equity

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Question: New Robot, Inc has a required rate of return on its assets of 11.54% and a cost of debt of 4.49%. Its current debt-to-equity ratio is 0.9. What is the required rate of return on the company's equity?

Assume that all conditions identified by the M&M Propositions 1 and 2 apply.

Please write the answer in percentage form. Round the answer to two decimals.

Please write % sign in the units box.

Reference no: EM133326203

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