According to Modigliani and Miller $($M&M$),$ in a world of perfect capital markets, what will be the expected equity return $($or cost of equity$)$ for a firm that has a cost of capital of $10\mathrm{.}2$ percent, a cost of debt of $6\mathrm{.}8$ percent, debt valued at $$1\mathrm{.}21$ million, and equity valued at $$1\mathrm{.}09$ million? How will your answer change if we now relax the M&M perfect capital markets assumption and incorporate a corporate tax rate of $35$ percent?

In the first case, the expected equity return is $\%.($Round to one decimal place.$)$

Then, the next question in part two of this assignment is $"$in the second case, the expected equity return is $\_\_\_\%"$

PLEASE ASSIST WITH BOTH PARTS