Backwards Resources has a WACC of 12.6 percent, and it is subject to a 40 percent marginal

Question:

Backwards Resources has a WACC of 12.6 percent, and it is subject to a 40 percent marginal tax rate. Backwards has $250 million of debt outstanding at an interest rate of 9 percent and $750 million of equity (market value) outstanding. What is the on the equity with this capital structure?

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...