The common stock and debt of East Sussex International are valued at $60 million and $40 million, respectively. Investors currently require a 16% return on the common stock and an 8% return on the debt. If East Sussex International 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 on the stock and that there are no taxes.