The required rate of return on the assests of a firm is 10 percent, the firm has a debt-to-common-stock ratio of 35 percent, and a cost of debt of 8 percent. If the firm has no oreferred stock and the three conditions specified by M&M hold, what is the expected rate of return on the firms common stock?

expexted rate of return

The required rate of return on the assets of a firm is 10 percent, the firm has a debt-to-common-stock ratio of 35 percent, and a cost of debt of 8 percent. If the firm has no preferred stock and the three conditions specified by MEM hold, what is the expected rate of return on the firm's common stock? (Round answer to 1 decimal place, eg. 52.7.) %