Arya Corporation is planning to repurchase part of its common stock by issuing

corporate debt. As a result, the firm's debt$-$equity ratio is expected to rise from $35$

percent to $50$ percent. The firm currently has $$4\mathrm{.}5$ million worth of debt outstanding. The

cost of this debt is $8$ percent per year. The firm expects to have an EBIT of $$1\mathrm{.}44$ million

per year in perpetuity and pays no taxes.

a$.$ What is the market value of the firm before and after the repurchase announcement?

$($Do not round intermediate calculations and enter your answers in dollars, not

millions of dollars, rounded to the nearest whole dollar, e$.$g$.,1,234,567.)$

b$.$ What is the expected return on the firm's equity before the announcement of the

stock repurchase plan? $($Do not round intermediate calculations and enter your

answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ What is the expected return on the equity of an otherwise identical all$-$equity firm? $($Do

not round intermediate calculations and enter your answer as a percent rounded to

$2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

d$.$ What is the expected return on the firm's equity after the announcement of the stock

repurchase plan? $($Do not round intermediate calculations and enter your answer as

a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$