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PowerPlus Inc is a medium cap battery manufacturer based in Germany with 42 percent marginal tax rate. The company has 6.42 billion equity market value

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PowerPlus Inc is a medium cap battery manufacturer based in Germany with 42 percent marginal tax rate. The company has 6.42 billion equity market value and a Weighted Average Cost of Capital (WACC) of 10.9 percent. PowerPlus has 8.67 billion of debt outstanding at an interest rate of 8 percent. Required: Calculate the expected return of the company's equity given this capital structure

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