The failure to contain the pandemic in the United States has led to the highest number of infections and deaths in the world and the trump administration's failure to talk science and fool its people. The director of economic Research, Nick_Bunker, said people were dropping out of the job market at an alarming rate, but also at an alarming concentration in a few industries.

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.