Macbeth Spot Removers is entirely equity financed. Use the following information.

Data
Number of shares		1,300
Price per share	$	16
Market value of shares	$	20,800
Expected operating income	$	3,120
Return on assets		15	%

Macbeth now decides to issue $10,400 of debt and to use the proceeds to repurchase stock. Suppose that Ms. Macbeth's investment bankers have informed her that since the new issue of debt is risky, debtholders will demand a return of 12.2%, which is 2.8% above the risk-free interest rate. a. What are r_A and r_E after the debt issue? (Enter your answers as a percent rounded to 2 decimal places.)