WHAT WOULD YOU DO? to include the

steps given in the LAP..

Situation 1

You are a salesperson. A customer returns a clothes iron, saying that it did not function properly.

The customer complains, "The steam poured out of the back of this iron rather than the front.

It burned my hand."

I

Policy: To return products, the customer must present the sales receipt.

Situation ?

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.