7 Question 617 points) ABC Corporation is planning to repurchase part of its common sock by po detta the firm's debt equity ratio is expected to rise from 20% to 40%. The fum cartes 6 we debt outstanding The cost of this debt is 6% per year. ABC expects to have an EBIT of 526 mile per in perpetuity. ABC pays no taxes. The market value of the firm after the repuechuase 6 million. What is the expected return on the firm's equity after the announcement of the stock that plan? 8.34% 7.22% 07.71% 8.67% 9739 7 Question 617 points) ABC Corporation is planning to repurchase part of its common sock by po detta the firm's debt equity ratio is expected to rise from 20% to 40%. The fum cartes 6 we debt outstanding The cost of this debt is 6% per year. ABC expects to have an EBIT of 526 mile per in perpetuity. ABC pays no taxes. The market value of the firm after the repuechuase 6 million. What is the expected return on the firm's equity after the announcement of the stock that plan? 8.34% 7.22% 07.71% 8.67% 9739