SQ Inc. is an all-equity firm that has an expected return of 18.2%. If the company repurchases 15 percent of the common stock and substitutes an equal value of debt yielding 5 percent, what is the expected return on the common stock after refinancing?(Ignore taxes.) (Hint: use MMII )

A. 22.04%

B. 17.58%

C. 19.12%

D. 20.53%

E. 15.92%