D&C is financed entirely by common stock which is priced to offer a 15% expected return. Now suppose the company repurchases 25% of the common stock and substitutes an equal value of debt that yields 6 percent per year. Assume a world of MM without taxes. Compute the expected return on the common stock after the recapitalization. Suppose before the recapitalization. the stock price is $40 and that earnings per share are expected to be $6. Compute the expected earnings per share after the recapitalization