Virginia Ham, Inc. is the company without any debt. The firm generates $313 every year in pretax cash flows and the cash flow is taxable. The appropriate discount rate is 12.2 percent Tax rate is 45 percent.

Management is considering changing its capital structure by selling a $655 perpetual bond with an interest rate of 6.0 percent and paying a one-time special dividend of $655.

What is the required rate of return on company's stock after the restructuring is completed?

Assume that all conditions identified by the M&M Propositions 1 and 2 with taxes apply.

Round the answer to two decimals in percentage form.

Please write % sign in the units box.