Score: 0 of 1 pt 14 of 17 (15 complete) Hw Score: 82.35%, 14 of 17 pts B14-14 (book/static) Question Help Global Pistons GP has common stock with a market value o $20 m on and debt with a value a $100 milli n nvestors expect a 15% re on the stock and a 6% retum on the debt Assume perfect capital markets. a. Suppose GP issues S100 mllion of new stock to buy back the debt. What is the expected return of the stock after this transaction? b. Suppose instead GP issues S50.00 million of new debt to repurchase stock. i. If the risk of the debt does not change, what is the expected return of the stock after this transaction? ii lf the nsk of the debt increases, would the expected return of the stock be higher or lower than when debt is issued to repurchase stock in part (i)? a. Suppose GP issues $100 million of new stock to buy back the debt. What is the expected return of the stock after this transaction? If GP issues $100 million of new stock to buy back the debt, the expected return is | 13.11 %. (Round to two decimal places.)