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Assume that WyoOne Corp. recently moved to its optimal capital structure by issuing $ 4 , 0 0 0 mn additional debt and this move

Assume that WyoOne Corp. recently moved to its optimal capital structure by issuing $4,000mn additional debt and this move resulted in an increase of $2,500mn in firm value. There are 800mn shares outstanding and the current stock price is $17.5. WyoOne corp. intends to buy back shares with the proceeds from debt. Use this information to answer the following questions.
1) At what buy-back price would shareholders be indifferent between selling shares back and holding on to them?
2) If WyoOne Corp. announces a share buyback program at $22.5 per share, how many shares (in millions) can the company buyback?
3) If WyoOne Corp. announces a share buyback program at $22.5, how many shares (in millions) will be remaining after the buyback?
4)If WyoOne Corp. announces a share buyback program at $22.5 per share, what is the dollar amount of premium (in millions) paid to selling shareholders?
5) If WyoOne Corp. announces a share buyback program at $22.5 per share, what is the dollar value (in millions) accruing to remaining shareholders?
6) If WyoOne Corp. announces a share buyback program at $22.5, what is the expected share price post-buyback?

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