Aubbard's Pet Foods is financed 50% by common stock and 50% by bonds. The expected return on the common stock is 116%, and he rate of interest on the bonds is 64%. Assume that the bonds are default-free and that there are no taxes. Now assume that Hubbard's issues more debt and uses the proceeds to retire equity. The new financing mix is 40%6 equity and 60% debt. Assume the debt is still default free. a. Given the initial capital structure, calculate the expected return on equity. Note: Do not round intermediate colculations. Enter your answer os o percent rounded to 1 decimol place. b. Given the revised capital structure, calculate the expected rate of return on equity Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal ploces