The common stock and debt of ABC are valued at $60 million and $40 million, respectively, Investors currently require a 20% return on the common stock and an 8% return on the debt. If ABC issues an additional $20 million of common stock and uses this money to retire debt, what happens to the market value of ABC and to the expected return of its stock? Assume the change in capital structure does not affect the risk of the debt and that there are no taxes and the MM (Modigliani-Miller) irrelevance proposition holds. If the risk of the debt did change, would your answer underestimate or overestimate the expected return on the stock? Explain.