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a Lang Corp. is currently all equity and has a value of $1,000,000 and a cost of equity of 15%. Lang plans to issue $400,000

a Lang Corp. is currently all equity and has a value of $1,000,000 and a cost of equity of 15%. Lang plans to issue $400,000 of debt with an interest rate of 9% and use the proceeds to repurchase stock. If Lang pays no taxes, what will be the expected return on Lang's stock after the debt issue? 12.6% 13.0% 17.4% 19.0% 24.0%

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