A firm operates in an economy characterized by the risk-free rate rf = 4% and the market rate of return rm= 15%. Moreover, the firms assets are such that the rate of return on debt is rd= 10% , the beta on equity is and the fraction of debt on total capital is equal to 40%, the remaining being equity. Assuming that the Modigliani and Miller framework holds, find: (2.1) the firms expected return on equity, (2.2) the expected return on assets, and the corresponding beta.