Consider a company that is currently all-equity financed and expects to operate in perpetuity with FCF that are expected to grow at the constant rate of 1.1%. The company's expected EBIT for next year is $3.1M (Mmillion) and the expected return of its equity is 11.7%. The current corporate tax rate is 21%. The government unexpectedly announces that the corporate tax rate will go up to 30% starting from next year. To compensate for the higher taxes, the company decides to exploit the tax advantage of debt by raising $4M in permanent debt and using the proceeds to buy back existing equity shares. The cost of capital of debt is 5.4%. Q: What is the expected return of the equity after the debt issuance? Report your answer in percentage (%) and round it to 2 decimal places