TTC currently has common stock with a market value of $8 billion, along with their debt of $3.2 billion. Investors are anticipating a 15% return on stock, and a 5% return on debt. If TTC were to issue $3.2 billion of new stock in order to pay off the debt, what would be the anticipated return of the stock after this transaction? What would happen to the return on stock if the company were instead to take out $1 billion in debt to repurchase shares? Assume both transaction would occur in a perfect market.

Anticipated stock return after stock issuance to pay off debt:

Anticipated return after increase of debt to repurchase shares:

Peas provide excel formulas or exact equations.