1. The common stock and debt of iOS Corp. are valued at $51 million and $28 million, respectively. Investors currently require a 14% return on the common stock and a 6% return on the debt. There are no taxes.

ANSWER=11.16

2. If iOS Corp. issues an additional $13 million of debt and uses this money to retire common stock, what will be the expected return on the stock? Recall that the WACC under the inital capital structure is 11.16. Assume that the change in capital structure does not affect the risk of the debt. Enter your answer as a percentage rounded to two decimal places. Do not include the percentage sign in your answer.

Looking for answer to question 2, thanks.