Hubbard's Pet Foods is financed 80% by common stock and 20% by bonds. The expected return on the common stock is 13.7%, and the rate of interest on the bonds is 7.4%. 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% 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 calculations. Enter your answer as a percent rounded to 1 decimal 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 places