If Windows Phone Corp. issues an additional $9 million of debt and uses this money to retire common stock, what will be the expected return on the stock? Recall that the WACC under the inital capital structure is 7.86. Assume that the change in capital structure does not affect the risk of the debt. Enter your answer as a percentage rounded to two decimal places. Do not include the percentage sign in your answer.

info valued at $48 million and $31 million investors require 11% common stock and a 3% return on debt. no taxes