Hardmon Enterprises is currently an all-equity firm with an expected return of 13.8%. It is considering borre a. Suppose Hardmon borrows to the point that its debt-equity ratio is 0.50. With this amount of debt, the de b. Suppose instead Hardmon borrows to the point that its debt-equity ratio is 1.50. With this amount of deb equity in this case? c. A senior manager argues that it is in the best interest of the shareholders to choose the capital structure a. Suppose Hardmon borrows to the point that its debt-equity ratio is 0.50. With this amount of debt, the det The expected return is 1%. (Round to two decimal places.) of 13.8%. It is considering borrowing money to buy back some of its existing shares. Assume perfect capital markets With this amount of debt, the debt cost of capital is 6%. What will be the expected return of equity after this transaction? is 1.50. With this amount of debt, Hardmon's debt will bo much riskler. As a result, the debt cost of capital will be 8% What will be the expected roturn of s to choose the capital structure that leads to the highest expected retum for the stock. How would you respond to this argument? With this amount of debt, the debt cost of capital is 6%. What will be the expected return of equity after this transaction