5. The firm is considering either leasing or buying new $19,000 equipment. The lessor will charge $12,000 a year for a two-year lease. The equipment has a two-year life after which time it is expected to have a zero resale value. The firm uses straight-line depreciation, borrows money at 7% pre-tax, and has a tax rate of 21%. What is the net advantage to leasing? A) $5186.14 B) $1747.01 C) $2177.57 D) $6303.21 E) -6828.33 6. The firm is currently an all-equity firm with assets worth $120 million and 10 million shares outstanding. The firm plans to borrow $60 million and use these funds to repurchase shares. The firm's marginal corporate tax is 21%, and it plans to keep its outstanding debt equal to $60 million permanently. What is the lowest price per share the firm can offer and have shareholders tender their shares? A) $1.26 B) $7.26 C) $8.26 D) $12.0 E) $13.26