Hubbard's Pet Foods is financed 50% by common stock and 50% by bonds. The expected return on the common stock is 116%, and the rate of unterest on the bonds is 6.4%. Assume that the bonds are defoultifiee and that there are no taxes. Now assume that Hubbard's issues more debt and uses the proceeds to retire equity. The new financing mixis 40%6 equity and 60%6 debt. Assume the debt is stall default free. a. Given the initial capital structure, calculate the expected return on equity Note: Do not round intermediote calculations. Enter your answer as a percent rounded to 1 decimal ploce b. Given the revised capial structure, calculate the expected rate of retum on equaty. Note: Do not round intermediate calculotions. Enter your answer as o percent founded to 2 decimal places