The matching principle:
(a) matches the expense incurred to generate the revenue with the invoice
(b) matches the expense incurred to generate the revenue with net income
(c) matches the event of the selling of the goods or service with the sales price
(d) matches the expense incurred to generate the revenue with the accounting period in which the revenue is recognized

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.