Suppose YE is an all-equity firm with an EBIT of $27,000 per year that is expected to stay the same for the foreseeable future. Your research shows that the beta equity of YE is 1.50 and it has 10,000 shares outstanding. YE has however recently issued a bond yielding 4.50% with a market value of $120,000 and will use these funds to buy back shares (a fairly common practice). YE also plans to retain $120,000 of debt financing in perpetuity. Suppose the expected return on the market is 7% and the risk free rate is 3%. What will YE's new return on equity be? For this question, assume taxes are zero.