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Company A is currently an all-equity firm with an expected retum of 10.23%. It is considering borrowing money to buy back some of its existing

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Company A is currently an all-equity firm with an expected retum of 10.23%. It is considering borrowing money to buy back some of its existing shares, thus increasing its levorage. Suppose the company borrows to the point that its debt-equity ratio is 1.74. With this amount of debt, the debt cost of capitat is 6.66%. What will be the expected feturn of equity after this transaction? NOTE: Submit your answers with 4 decimals after the dot. Do not include the "\$" sign

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