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HW Score: 83.33%, 50 P14-14 (similar to) Question Help Global Pistons (GP) has common stock with a market value of $460 milion and debt with a value of $306 million. Investors expect a 10% return on the stock and a 4% return on the debt. Assume perfect capital markets a. Suppose GP issues $306 milion of new stock to buy back the debt. What is the expected return of the stock after this transaction? b. Suppose instead GP issues 599.02 million of new debt to repurchase stock LWthe risk of the debt does not change, what is the expected return of the stock after this transaction? IL. If the risk of the debt increases, would the expected return of the stock be higher or lower than when bis sued to repurchase stock inport? a. Suppose GP ses $306 milion of new stock to buy back the debt. What is the expected return of the stock after this transaction? GP $306 milion of new stock to buy back the debt. the expected roumis 12.60% (Round to two decimal places)