Hubbard Industries is an? all-equity firm whose shares have an expected return of 9.9%
Hubbard does a leveraged? recapitalization, issuing debt and repurchasing? stock, until its? debt-equity ratio is 0.54
Due to the increased? risk, shareholders now expect a return of 14.5 %
Assuming there are no taxes and? Hubbard's debt is? risk-free, what is the interest rate on the? debt?