OF corporation$($OFC$)$ and xy corporation are identical firma in all respects except for their capital structure. OFC is all equity financed with $600$$ in stock. Xyc uses both stock and perpetual debt; its stock is worth $300$$ and the interest rate on its debt is $8\%.$ Both firms expect EBIT to$-$be $80$$

Mr$.$DEF owns $30$$ worth of XYZ$$s stock. What rate of return is he expecting?

Show how mr def could generate exactly same cash flow and rate of return by investing in ofc and using homemade leverage