Assume that you are creating a chart of accounts for a company. each account number will have two digits. the first digit indicates the major account group to which the account belongs. which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?

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.