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Question 21 1 pts Firm DoobaScoob is financed 100% by common stock. The expected return on the common stock is 13%. Now assume that the

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Question 21 1 pts Firm DoobaScoob is financed 100% by common stock. The expected return on the common stock is 13%. Now assume that the DoobaScoob issues debt and uses the proceeds to retire equity. Assume that the bonds are defdult free and require 6% return, and that there are no taxes. The new financing mix is 60% equity and 40% debt. What is the expected return on the package of common stocks and bonds? 13% 13.6% O 15.2% 17.7%

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