Binder is an all equity firm that is subject to a 30% tax rate. Its equity holders require a 12% return. The firm's initial market value is $3,275,000 and there are 175,000 shares outstanding. The firm has announced they will issue $1,250,000 in debt at 7% and they will use the proceeds to repurchase shares. If you assume markets are efficient, 1. How many shares will be repurchased? 2. What is the new stock price