3. A firm has assets worth $300 million that return 12% and is financed entirely by common stock. Each share costs $3 and there are 100 million shares outstanding. In a leveraged recapitalization, suppose the firm issues $60 million worth of debt at a yield of 5% to buy back shares. Assume the debt is perpetual and the firm never defaults on debt. The tax rate is zero. a. What is the value of the firm after the leveraged recapitalization? b. What is the new stock price after the leveraged recapitalization? c. What is the new rate of return on equity