Company A has $10 million in debt and 800.000 shares outstanding for $60 each. Company A is planning to issue $8 million in det to repurchase shares. Assume that Company A corporate taxes are 34%, there is a premium of 10% to buyback stocks and the cost of debt is 7%. Stock price will increase after the repurchase (Answer Yes or No)? If so, how much it will increase?

(I already have the answers and they are: Yes, 4.89) But I wanna know how to get to this.