$10.$ Nilpoj corporation is an all equity firm with $1$M shares outstanding and a total market value of $$20$M$.$

$$ Nilpoj pays out all expected earnings as dividends to common stockholders.

$$ Nilpoj estimates that operating income to be $$3$M per year and the firm expects to produce a level stream of earnings in perpetuity.

$$ Assume a perfect capital market, in particular, the corporate tax rates are equal to zero.

$($a$)$ What is Nilpoj$$s current share price?

$($b$)$ What is Nilpoj$$s return on assests?

Next:The Nilpoj board decides to issue $$13\mathrm{.}34$M in debt at an interest rate of $7\mathrm{.}5\%$ and use the proceeds to repurchase shares of equity.

$($c$)$ What is the new value oo repurchase shares of equity.tC on assets?

$($d$)$ What is the number of common shares repurchased, and the price of one such share?

$($e$)$What is the new return on equity after adding the debt to the balance sheet?

$($f$)$ What is the Nilpoj's weighted average cost of capital?

$($g$)$ If instead the corporate take rate were $33\%$ instead of $0\%$; how would your answers to $($c$-$f$)$ change qualitatively? justify your answer