'The ABC Company has 30,000,000 shares outstanding selling at $70 per share. It is paying taxes at a.35 rate. Its investors have zero taxes.

It has $200,000,000 oftaxable income. The company decided to proceed with the following restructuring (which is a surprise to the market):
I. Give shareholders $60 per share.
2. Give shareholders .10 debentures with a value of$25 per share.
3. Issue in the market an additional.10 debentures of $ l,000,000,000.

a. The value of Vu is ___________'

b. The value of the firm after the restructuring is $ ____________

c. The value of the common stock after restructuring is ____________

d. The expected value per share of the "stub" is $____________

e. A stockholder owning stock with a value of $70 before the restructuring will have total value per share of$ after the restructuring. This is a gain of $____________ per share.