All of the following are arguments commonly made against corporate social responsibility except a. business is not equipped to handle social activities. b. social problems should be addressed first by the free-market economic system, and then, if necessary, by government. c. business did not create today's social problems, so it should not be expected to solve them. d. business already has enough power--it should not be given more.

The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.