4 (3) (30 points) Suppose a rm is considering buying back 50 million shares at the current market price of $40. Here is the rm's balance sheet before the buy back. Asset (millions) Liability Cash 4,000 4,000 Debt Other Assets 6,000 6,000 Shareholder Equity The net income is $1,000 million, including 5% income earned by cash. EPS = $2. PIE 2 20. Current market price = $40. Total shares outstanding are 500 million. (a) Calculate book value of equity (BE, shareholder equity) per share, total market capitalization, return on book equity (ROE, or NUBE), and gt-debt-tu-equity ratio before the buyback program. The net debt is equal to debt minus cash. (b) What does the new balance sheet look like aer the buyback? Asset (millions) Liability Cash Debt Other Assets Shareholder Equity