4. Makeover Inc. believes that at its current stock price of $16.00 the firm is undervalued in the market. Makeover plans to repurchase 2.4 million of its 20 million shares outstanding. The firm's current earnings are $44 million. If management's assumptions hold, what is the expected per-share market price after repurchasing? * a. $16.00 W b. $17.26 O c. $18.18 O d. $20.00 O e. $24.40 5. Your company has decided that its capital budget during the coming year will be $20 million. Its optimal capital structure is 60 percent equity and 40 percent debt. Its earnings before interest and taxes (EBIT) are projected to be $34.667 million for the year. The company has $200 million of assets; its average interest rate on outstanding debt is 10 percent: and its tax rate is 40 percent. If the company follows the residual dividend policy and maintains the same capital structure. what will its dividend payout ratio be