13. Epic Record's equity has a market value of $5 million with 500,000 shares outstanding. The book value of its equity is $1,750,000.

a. What is Epic's stock price per share? What is its book value per share?

b. If the company repurchases 20 percent of its shares in the stock market, how will this affect the book value of equity if all else re- mains the same?

c. If there are no taxes or transaction costs, and investors do not change their perceptions of the firm, what should the market value of the firm be after the repurchase?