Equity, Inc. is currently an all-equity financed firm. It has 10,000 shares outstanding that sell for $20 each. The firm has an operating income of $30,000 and pays no taxes. The firm contemplates a restructuring that would issue $50,000 in 8% debt which will be used to repurchase stock. a. Complete the following table.

Before Restructuring		After Restructuring
	Operating Income
	Interest
	Number of Shares Outstanding
	Earnings Per Share
	Return on Equity
	Price of Stock (per share)
	Value of Stock
	Value of Debt
	Value of Firm

b. Give a brief explanation of what happened to the share price and the return on equity as a result of this restructuring? Why did they change or not change