Use the information for the question(s) below. Assume that Modigliani-Miller's perfect capital market conditions are met. Mercer Corp. has no debt. Its assets will be worth $400 million in one year if the economy is strong, but only $200 million in one year if the economy is weak. Both events are equally likely. The market value today of its assets is $250 million. The risk-free interest rate is 5%. Suppose Mercer borrows $150 million today at this rate and uses the proceeds to pay an immediate cash dividend. The expected return of Mercer stock just after the dividend is paid is closest to: 20.00% 42.50% None of the other answers are correct. 38.00% 17.00%