The Clayton Act of 1914:.a. outlawed price discrimination, tying contracts, acquisition of stocks of competing corporations, and interlocking directorates that lessen competition. b. prohibited unfair or deceptive acts or practices in commerce that tend to reduce competition. c. outlawed vertical and conglomerate mergers. d. prohibited one firm from acquiring the assets of another when the effect was to limit competition.

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.