1. An all-equity firm has 50 million shares outstanding, each at a price of $10. The firm will soon announce that it will issue $100 million in perpetual debt at a cost of debt of 10%, and use the proceeds to repurchase shares. Assume the M&M framework with a corporate tax rate of 40%. (a) What is the firm's market value before the announcement? (b) After the announcement but before the debt is issued: i. What is the firm's market value? ii. What is the share price? (c) After the debt is issued but before the shares are repurchased: i. What is the firm's market value? ii. What is the share price? (d) After the shares are repurchased: i. What is the firm's market value? ii. What is the share price? iii. What is the current number of shares outstanding