All-equity company Scarlet has 400,000 outstanding shares. Earnings Before Interest and Taxes (EBIT) for the business is RM 2,000,000, and it is anticipated that it will not change over time. Each year, the corporation distributes all its earnings, making the EPS equal to the DPS. The corporation pays a 24% tax rate. The business is thinking about issuing bonds for RM 1 million (at par) and repurchasing shares with the money. The bonds' anticipated yield to maturity (YTM), if they were issued, is 8%. The market risk premium is 5%, and the risk-free rate is 5.6%. The company's beta is currently 0.8, but investment bankers predict that if the recapitalization takes place, the beta will increase to 1.1. Assume that the shares are repurchased at the same price they were at the time of the recapitalization. Required: a) What is the current stock price? (4Marks) b) Determine the number of shares after the repurchase. (4Marks) c) Determine the new EPS after the repurchase. (6 Marks) d) What would be the company's stock price following the recapitalization? (6 Marks)