Good Time Company is a regional chain department store. It will remain in business for one more year. The probability of a boom year is 60 percent and the probability of a recession is 40 percent. It is projected that the company will generate a total cash flow of $195 million in a boom year and $86 million in a recession. The company's required debt payment at the end of the year is $120 million. The market value of the company’s outstanding debt is $93 million. The company pays no taxes.
What is the expected return on the company's debt? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))