The common stock and debt of northern sludge are valued at $50 million and $30 million, respectively. investors currently require a 16% return on the firm’s common stock and 8% on its debt. if northern sludge issues an additional $10 million of common stock and uses this money to retire (i. e., to pay back) debt, what is the expected return on its common stock? assume first that the change in capital structure does not affect the risk of the debt. suppose next that the change in capital structure increased the risk of the debt. would your previous answer then under- or overstate the effect on the expected return on the firm’s common stock? assume throughout that the mm assumptions hold (i. e., no taxes, no costs of financial distress).

Acompany has two products: standard and deluxe. the company expects to produce 36,375 standard units and 62,240 deluxe units. it uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools.budgeted activity of cost driver activity cost pool budgeted cost standard deluxe activity 1 $ 93,000 2,500 5,250 activity 2 $ 92,000 4,500 5,500 activity 3 $ 87,000 3,000 2,800 what is the overhead cost per unit for the standard units? what is the overhead cost per unit for the deluxe units? (round activity rate and cost per unit answers to 2 decimal places.)activity expected costs expected activity driver activity rate1 93,000 2 92,000 3 87,000 standard activity activity driver activity rate allocated costs1 2 3