Suppose that with the $$55,000$ of debt the firm has a value of $$234,608\mathrm{.}82$ and a value of equity of $$179,608\mathrm{.}82.$ What will be the expected rate of return on the equity?

Enter your answer as a percentage rounded to two decimal places. Do not include the percentage sign as part of your answer.Suppose the firm has a value of $$223,058\mathrm{.}82$ when it is all equity financed. Now assume the firm issues $$55,000$ of debt paying

interest of $7\%$ per year and uses the proceeds to retire equity. The debt is expected to be permanent.

What will be the value of the firm? Enter your answer rounded to two decimal places.

Correct response: $234,608\mathrm{.}82+-0\mathrm{.}01$

What will be the value of the equity after the debt issue? Enter your answer rounded to two decimal places.

Correct response: $179,608\mathrm{.}82+-0\mathrm{.}01$

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Suppose that with the $$55,000$ of debt the firm has a value of $$234,608\mathrm{.}82$ and a value of equity of $$179,608\mathrm{.}82.$ What will be the

expected rate of return on the equity?

Enter your answer as a percentage rounded to two decimal places. Do not include the percentage sign as part of your answer.

Click "Verify" to proceed.