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