A company with 0 debt currently has 5 million shares of common stock outstanding, selling at $50 per share. The WACC (weighted average cost of capital) is 7%. They plan to issue $50 million in bonds to repurchase 1 million shares of their common stock. Cost of debt is 10% and tax rate is 35%.

a. Using the Miller and Modigliani theories, what would be the expected price per share of this company's common stock after this change in capital structure?

b. What is the firms expected WACC (weighted average cost of capital) after this change in capital structure?

Please show work.