The common stock and debt of iOS Corp. are valued at $75 million and $38 million, respectively. Investors currently require a 15% return on the common stock and a 9% return on the debt. There are no taxes. WACC=12.98%. Rassets=12.98%. Requity=16.14%.

Question: Suppose you prefer the original capital structure with a 15% return on the common stock and a WACC=12.98%.If you have $1000 to invest, how much should you invest in the stock and bonds of the restructed from (which have returns of 16.14% and 9%, respectively) to obtain the same return as an investment in the stock of the original firm? Answer: Amount into equity = 840.34 Amount into debt = 159.66. Why? Please write down the detail calculations.