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Your firm's free cash flows (after-tax earnings) are expected to be $8,000 per year in perpetuity, the market value of its outstanding securities is $40,000

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Your firm's free cash flows (after-tax earnings) are expected to be $8,000 per year in perpetuity, the market value of its outstanding securities is $40,000 when it is all equity financed, and your marginal tax rate is 35%. Assume that your firm faces corporate taxes. What is the required return on equity for your firm? O 33% 20% 28% 16% O 12%

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