Question: Help with one question. That is required return on the paragraph listed. I was able to get all the other questions, but for some reason

 Help with one question. That is required return on the paragraph

Help with one question. That is required return on the paragraph listed. I was able to get all the other questions, but for some reason I am having trouble with this question.

listed. I was able to get all the other questions, but for

Green Manufacturing, INC., plans to announce that it will issues $1.93 million of perpetual debt and use the proceeds to repurchase common stock. The bonds will sell at par with a coupon rate of 5 percent. Green is currently an all equity firm worth $5.08 million with 330,000 shares of common stock outstanding. After the sale of the bonds. Green will maintain the new capital structure indefinitely. Green currently generates annual pretax earnings of $1.43 million. This level of earnings is expected to remain constant in perpetuity. Green is subject to a corporate tax rate of 35 percent. Expected return is 18.30 % Price per share is 15.40 New Share price 17.44 Shares repurchased 110665.14 New Shares outstanding 219334.86 What is the required return on Green's equity after the restructuring? Required Return

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