Catto Hogg Inc. (CHI) has been 100% equity owned but recently made changes to its capital structure. You have collected the following information:

- CHI issued $12,000,000 in new debt to buy back stock

- The firm had no short-term investments before or after the recapitalization

- CHI had 1,500,000 shares outstanding before the recapitalization

- CHI's capital structure now has 20% debt

- The company's operations are valued at $60 million after recapitlization

1. Based on the information available, solve for the values in the following table.

Stock Price before the repurchase	?
Number of shares repurchased	?
Value of equity	?

Now consider this case: 2. CHI decides to deleverage in the future, the total number of shares outstanding will keep decreasing until creditors own 100% of the company. Is this statement true or false?