for question A, find return on assets (Ra). NOT expected rate of return. incorrect answers shown, need corrected thank you!

Hubbard's. Pet Foods is financed 70% by common stock and 30% by bonds. The expected return on the common stock is 12.4%, and the rate of interest on the bonds is 6.8%. 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 56% equity and 44% 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. (8) Answer is complete but not entirely correct. Expected rate of teturn 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