The team leaders in the production department at virginiastalk, an automobile manufacturer, follow standing plans that specify the detailed steps they are expected to follow when an export order gets canceled. given this information, the standing plans in this scenario can be referred to as

The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.