7. An all-equity company's total market value is $6 million and it has 200,000 shares outstanding. The company announces a program to issue $2 million worth of bonds at 8% interest and to use the proceeds to buy back its ordinary shares. Assume perfect capital markets and a corporate tax rate of 30%. A. Calculate the share price of the company before the bond issue. Show all calculations. B. Calculate the present value of the tax shield that the company acquires through the bond issue. Show all calculations. C. In perfect capital markets, what is the likely increase in company's share price after the announcement? Show all calculations