According to the work schedule, it is time for you to take your lunch break. before leaving, you make sure another coworker in the department is going to cover your area while you are gone. instead, he tells you that he is also going to lunch. you know he is not scheduled for lunch until later. what would you do?

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.