Please answer the following question with calculation for each step.

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Question 12 1 pts The common stock and debt of company A are valued at $50 million and $30 million, respectively. Investors currently require a 16% return on the common stock and an 8% return on the debt. If company A issues an additi 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 at there are no taxes. Edit Format Table 12pt Paragraph man ) | a words . Previous No new data to save. Last checked at 6:14pm