Executive Chalk is financed solely by common stock and has outstanding $44$ million shares with a market price of $$48$ a share. It now announces that it intends to issue $$720$ million of debt and to use the proceeds to buy back common stock.

a$.$ How is the market price of the stock affected by the announcement?

b$.$ How many shares can the company buy back with the $$720$ million of new debt that it issues?

Note: Enter your answer in millions.

c$-1.$ What is the market value of the firm $($equity plus debt$)$ after the change in capital structure?

Note: Enter your answer in millions.

$c-2.$ Did the market value of the firm change?

d$.$ What is the debt ratio after the change in structure?

Note: Round your answer to $2$ decimal places.

e$.$ Who $($if anyone$)$ gains or loses?

$\backslash$table$[[$a$.$ Effect on market price,Stock price remains the same.,$],[$b$.$ Shares repurchased,,million$],[$c$-1.$ Market value,,million$],[$c$-2.$ Did the market value of the firm change?,No$,],[$d$.$ Debt ratio,,$],[$e$.$ Who $($if anyone$)$ gains or loses?,No one gains or loses.,$]]$