solve both

N Stores is an all-equity firm whose shares have an expected return of 12%. H&N Stores does a leveraged recapitalization, issuing debt and repurchasing stock, until its debt-equity ration is 0.70. Due to the increased risk, shareholders now expect a return of 18%. Assuming there are no taxes and H&N Store's debt is risk free, what is the interest rate on the debt? A. 3.4% B. 18.0% C. 0.6% D. 8.4% E. 5.0% debt. The average debt-t value 18. Suppose AceAnimal Products inc has an equity cost of capital of 10.3% and ratio for the animal products industry is 25%, what would its cost of equity be if it took on the of debt for its industry at a cost of debt of 6%? A. 10.8% B. 11.4% average amount D. 12.5% E. 12.9%