6. A firm has total assets of $1,000 and an EBIT of $100 each year. The stock price is $1 per share and the firm's market value equals to its book value. Assuming no taxes. a. Unlevered firm: If the firm is 100% equity financed, how many shares of stocks are outstanding? What are the Return on Equity (ROE) and Earnings Per Share (EPS) for the firm? (3 points) Shares of stocks outstanding is 1,000 and the stock price is $11,000/1= 1000 shares Return rate on equity (ROE)- 100/1000=0.1 Earnings Per Share (EPS) 100/1000-$0.1 b. Levered firm: if the firm is 50% debt financed with an interest rate of 10%, how many shares of stocks are outstanding? What are the Return on Equity (ROE) and Earnings Per Share (EPS) for the firm? (3 points) Debt 0.5*1000-$500 Equity 1,000-500-$500 ROE 100/500-0.2