$2.$ A company with $2$ million shares outstanding and earnings of $$2\mathrm{.}3$ million decides to

utilize $$5$ million in excess cash to repurchase shares in the open market, where the

company's shares are trading at $$18.$ The balance sheet indicates total debt of $$10$ million

and total equity of $$10$ million

a$.$ For an investor holding $150,000$ shares and not selling any during the repurchase,

calculate the investor's percentage ownership in the company before and after the

share repurchases.

b$.$ Compute the earnings$-$per$-$share $($EPS$)$ of the company both before and after the

buyback, assuming the entire excess cash is used to repurchase shares at the

market price.

c$.$ Assuming no other changes, determine the debt ratio of the company before and

after the stock buyback.