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Question 45 (2 points) Saved Lang Corp. is currently all equity and has a value of $1,000,000 and a cost of equity of 16%. Lang

Question 45 (2 points) Saved Lang Corp. is currently all equity and has a value of $1,000,000 and a cost of equity of 16%. Lang plans to issue $400,000 of debt with an interest rate of 10% 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? 13.6% 14.0% 18.4% 20.0% 25.0%

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