Problem 16.18 (Solution Video) Blossom Resources Company has a WACC of 12.2 percent, and it is subject to a 40 percent marginal tax rate. Blossom has $250 million of debt outstanding at an interest rate of 11 percent and $1,000 million of equity (at market value) outstanding. What is the expected return on the equity with this capital structure? (Round answer to 2 decimal places, e.g. 17.54%.) Expected return on equity % Click if you would like to Show Work for this question: Open Show Work