(c) Futura Design is currently an all-equity firm and has 200,000 shares. Its earnings before interest and tax (EBIT) is expected to be $350,000. It is embarking on a major capital structure exercise whereby it will issue $600,000 in debt and use the proceeds to buy back its own shares at the prevailing market price. The interest rate on the newly-issued debt is 5% per annum. After the recapitalization, its earnings per share (EPS) will be $1.28. Calculate Futura's share price before this recapitalization exercise. Assume the corporate tax rate of Futura is 40%. (5 marks) (d) Panda Inc's stock is currently trading at $5. The company is contemplating to do a one-for-two reverse stock split. Assuming the reverse stock split has no effect on the market value of its equity, what will be Panda Inc's stock price after the reverse stock split? (2 marks)