Consider promissory estoppel and quasi-contracts. Do you like the fact that these doctrines exist? Should courts have wiggle room to enforce deals that fail to meet formal contract requirements, or should the rule be, If it's not an actual contract, too bad?

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.