The common stock and debt of Company X are valued at $60 million and $40 million, respectively.

Investors currently require a 15% return on the common stock and a 5% return on the debt.

If the company issues an additional $10 million of common stock and uses this money to retire debt, what happens to the expected return on the stock?

Assume that the change in capital structure does not affect the risk of the debt and that there are no taxes.