Michael& Mitchell Electronics Plc (MMEP) has its Chief Financial Officer is having MMEP recapitalization plan. The officer wants to change the capital structure of the firm, MMEP, to have a major component of its capital structure as financial leverage from the all-equity financing structure. The price per share for BRC stands at 60 with an outstanding common shares of 500,000. The firms expected EBIT per year stands at 2,400,000 in perpetuity. On the recapitalization the firm has in its proposal that long-term debt will be issued at a value of 15,000,000 at an interest rate of 6.0%. Common stock numbering 250,000 shares will be repurchased with the proceeds valued at 15,000,000. Assuming market frictions like personal income tax or corporate income tax do not exist, estimate the equity expected return MMEP shareholders under the two capital structure positions, namely: the current all-equity and the recapitalization plan. 1