A project costs $$272$ at t$=0$ and generates unlevered after$-$tax cash flows of $$54$ per year forever.$$ The project's unlevered cost of capital is $9\mathrm{.}4\%.$ The initial cost of the project is paid for with a combination of debt and equity.$$ Debt contributes $$91$ and will earn interest at $2\mathrm{.}4\%$ forever.$($The debt is perpetual, it never matures.$$ Assume the debt tax shield cash flows have the same risk profile as the debt cash flows.$$ The debt is fairly priced.$$ All of the project NPV accrues to the equity holders.$)$ The tax rate is $27\%.$

What is the $($levered$)$ cash flow to equity? $($per year$)$ Give your answer in dollars to the nearest $$0\mathrm{.}01.$ correct answer: $52\mathrm{.}41$

$*$A project costs $$272$ at t$=0$ and generates unlevered after$-$tax cash flows of $$54$ per year forever.$$ The project's unlevered cost of capital is $9\mathrm{.}4\%.$ The initial cost of the project is paid for with a combination of debt and equity.$$Debt contributes $$91$ and will earn interest at $2\mathrm{.}4\%$ forever.$($The debt is perpetual, it never matures.$$ Assume the debt tax shield cash flows have the same risk profile as the debt cash flows.$$ The debt is fairly priced.$$ All of the project NPV accrues to the equity holders.$)$ The tax rate is $27\%.$

What is the required return on assets of the levered project? $$Give your answer in percentage to the nearest $0\mathrm{.}1\%.$ Correct answer: $9\mathrm{.}1$