Zach is a sports enthusiast and enjoys staying fit by participating in a CrossFit program, playing basketball and soccer. He has been a loyal customer of Eastbay and when he signs in to his account, Eastbay offers suggestions on new products that Zach might like based upon his purchasing history. The ability of the Eastbay web store to offer product suggestions based on Zach's purchasing history is known as the benefit of B2C e-marketing.

The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 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 interest rate on northern’s debt and that there are no taxes.