x Your answer is incorrect. Sandhill Resources Company is currently an all-equity firm with a WACC of 12 percent and a 40 percent marginal tax rate. Sandhill wants to move ton capital structure with $300 million of debt outstanding at an interest rate of 8 percent and a market value of equity equal to $900 million outstanding. Using M&M Proposition 2 with taxes, Equation 16.5, what is the expected return on equity at the new capital structure? (Round answer to 1 decimal place, e.g. 17.5%.) Expected return on equity 14.40 %%