l Bell 4:53 PM Aceline Corp is currently all equity financed. Cost of capital is 15% and firm value is 10 million. The company is considering a 4 million debt issue and 8% interest rate. Money is to...

…Question in photo And return on equity is: 17.46% according to m and m proposition A. 13.09% B. 17.46% C. 13.16% D. 15% E. 16.70%

Extracted text: l Bell 4:53 PM Aceline Corp is currently all equity financed. Cost of capital is 15% and firm value is 10 million. The company is considering a 4 million debt issue and 8% interest rate. Money is to repurchase shares. Marginal tax rate is 35%. According to m and m proposition what is Acelines return on equity after the debt issue? VX