A firm has no debt outstanding $,$ and its financial position is given by the following data : Assets $($market value$=$book value$=$$$3,000,000$;; EBIT$=$$$500,000$; cost of equity$=10\%$; Stock price$=$$$15$ ; Outstanding shares $200,000$; Corporate tax rate approx $40\%$ The firm is considering selling bonds and repurchasing its stock simultaneously. If it moves to a capital structure with $30\%$ of debt based on market values, its cost of equity will increase to $11\%$ to reflect increased risk. Bond can be sold at a cost of $7\%.$ The firm is a zero$-$growth firm. Hence, all of the dividends are paid out as dividends. Earnings are expected to be constant over time.

$($ A$)$ What the new value of the firm after its use of financial leverage?

$($ B $)$ What would be new price of the firm's stock?

$($ C $)$ What's the firm's earnings per share after the recapitalization $.$