The following information was extracted from the 2020 financial statements of Pharoah Company: Income from continuing operations before income tax $705500 Selling and administrative expenses 476000 Income from continuing operations 497000 Gross profit 1351000 Assuming that there are no other revenues and gains, amount reported for other expenses and losses is.

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.