2. Organic Donuts (OD) is a publicly traded all-equity firm with a stable EBIT of Rs. 12 million. OD has 6 million shares outstanding. The return on the market, Rm is 12.0%, the standard deviation of the market return is 16.0%, and the risk-free rate is 4.0%. The return on OD stock has a correlation of 0.80 with the market return, and has a standard deviation of return of 22.5%. There are no taxes or transaction costs. Assume M&M perfect capital markets. What is the required return on unlevered equity for OD's stock? % (write to one decimal place, without % sign, 12.1% should be entered as 12.1) What is OD's stock price assuming all earning is distributed as income. (round to one decimal place) What is the value of the firm? (round to one decimal place, in millions. E.g. 12.3 million) OD's management has decided to change the capital structure of the company to 50% debt. OD's debt is considered risk-free so it can borrow at the risk-free rate. OD will use this debt issue to repurchase shares. How many shares are repurchased? (write to one decimal place, in millions) What is the new EPS? (write to one decimal place) What is the required return on OD's levered equity? (write to one decimal place, 12.1% should be entered as 12.1) What is the new share price? (write to one decimal place) What is the post-restructuring WACC for OD? (write to one decimal place, 12.1% should be entered as 12.1)