Based on the image shared answer the TEXT question::: Global Pistons $($GP$)$ has common stock with a market value of $$270$ million and debt with a value of $$207$ million. Investors expect a $15\%$ return on the stock and a $8\%$ return on the debt. Assume perfect capital markets.

a$.$ Suppose GP issues $$207$ million of new stock to buy back the debt. What is the expected return of the stock after this transaction?

b$.$ Suppose instead GP issues $$40\mathrm{.}54$ million of new debt to repurchase stock.

i$.$ If the risk of the debt does not change, what is the expected return of the stock after this transaction?

ii$.$ If the risk of the debt increases, would the expected return of the stock be higher or lower than when debt is issued to repurchase stock in part $($i$)?$