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Recapitalization RC Media Inc plans to issue debt and retire stock in order to lever up its currently unlevered financing The recapitalization proposal is

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Recapitalization RC Media Inc plans to issue debt and retire stock in order to lever up its currently unlevered financing The recapitalization proposal is to $19,000,000 worth of the proceeds to buy back and retire shares of common stock that currently sell for $39 RC currently has 1,000,000 shares of common stock outstanding and its annual net operating pros a Indefinitely Assuming perfect capital markets, calculate RC's expected retam on equity for both the current and proposed capital structure debt with a 70% rate and use be $3,000,000 RC's expected return on equity for the curent capital structure is % (Round to two decimal places.)

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