Based on the 2006 numbers and considering the following repurchase proposal: buy back 14 million shares at a price of $18.50 per share with $209 million of cash and 50 million new debts at 6.75%. What is the new net income and taxes.

Blaine Kitchenware, Inc.: Capital Structure | 4040 Exhibit 2 Blaine Kitchenware, Inc. Balance Sheets, December 31, ($ in Thousands) Assets Cash & Cash Equivalents Marketable Securities Accounts Receivable Inventory Other Current Assets Total Current Assets 2004 $ 67,391 218,403 40,709 47,262 2,586 376,351 2005 $70,853 196,763 43,235 49,728 3,871 364,449 2006 $ 66,557 164,309 48,780 54,874 5,157 339,678 Property, Plant & Equipment Goodwill Other Assets Total Assets 99,402 8,134 13,331 $497,217 138,546 20,439 27,394 $550,829 174,321 38,281 39,973 $592,253 $ 31,936 Liabilities & Shareholders' Equity Accounts Payable Accrued Liabilities Taxes Payable Total Current Liabilities Other liabilities Deferred Taxes Total Liabilities Shareholders' Equity Total Liabilities & Shareholders' Equity $ 26,106 22,605 14,225 62,935 1,794 15,111 79,840 417,377 $497,217 $28,589 24,921 17,196 70,705 3,151 18,434 92,290 458.538 $550,829 16,884 76,581 4,814 22,495 103,890 488.363 $592,253 Note: Many items in BKI's historical balance sheets (e.g., Property, Plant & Equipment) have been affected by the firm's acquisitions. Exhibit 1 Blaine Kitchenware, Inc., Income Statements, years ended December 31, ($ in Thousands) Operating Results Revenue Less: Cost of Goods Sold Gross Profit Less: Selling, General & Administrative Operating Income Plus: Depreciation & Amortization EBITDA 2004 $291,940 204,265 87,676 25,293 62,383 6,987 69,370 2005 $307,964 220,234 87,731 27,049 60,682 8,213 2006 $342,251 249.794 92,458 28,512 63,946 9,914 73,860 68,895 63,946 13,506 EBIT Plus: Other Income (expense) Earnings Before Tax Less: Taxes Net Income Dividends 62,383 15,719 78,101 24,989 53,112 $ 18,589 60,682 16,057 76,738 24,303 52,435 $ 22,871 77,451 23,821 53,630 $ 28,345 Margins Revenue Growth Gross Margin EBIT Margin EBITDA Margin Effective Tax Ratea Net Income Margin Dividend payout ratio 3.2% 30.0% 21.4% 23.8% 32.0% 18.2% 35.0% 5.5% 28.5% 19.7% 22.4% 31.7% 17.0% 43.6% 11.1% 27.0% 18.7% 21.6% 30.8% 15.7% 52.9% a. Blaine's future tax rate was expected to rise to the statutory rate of 40%