Suppose a Monopoly firm produces bicycles and can sell 8 bicycles per month at a price of $700 per bicycle. In order to sell 9 bicycles per month, the Monopoly firm must lower the price of its bicycles to $650 per bicycle. Calculate the Total Revenue (TR) generated by the Monopoly firm when it sells 8 bicycles per month.

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.