Backwards resources has a wacc of 137 percent and it is

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Backwards Resources has a WACC of 13.7 percent, and it is subject to a 35 percent marginal tax rate. Backwards has $333 million of debt outstanding at an interest rate of 11 percent and $746 million of equity (market value) outstanding. What is the expected return on the equity with this capital structure?

Reference no: EM13390895

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