Question: Determine the expected return on equity for a firm with a WACC of 12 percent, $500,000 in 9 percent debt, $800,000 in equity.Both debt and

Determine the expected return on equity for a firm with a WACC of 12 percent, $500,000 in 9 percent debt, $800,000 in equity.Both debt and equity are shown at market values, and the firm pays no taxes.How can the expected return on equity be reduced?

Would it be possible to get a brief explanation of each step, I am a bit confused and would love to get back on track.

Thank you

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