An all equity firm is created to last one year. The payoff at the end of the year is uncertain. There is 60% probability the end of year value will be $2,000 and 40% probability of end of year value will be $1,000. The firm's hurdle return is 15%. The risk free rate is 5%. There is a 60% chance end of year value is $2,000, making the return on equity 43.75% and 40% chance end of year value is $1,000, making required return to equity holders 28.13%. Show Modigliani and Millers proposition about leverage by calculating the return on equity, for ending value $2,000, assuming the firm changes from all equity to40%debt. The levered firm's required return to equity holders, assuming end of year value $2,000, is ______%. (If your answer is 75.05%, key in 75.05.)