Green Manufacturing Inc. plans to announce that it will issue $$1\mathrm{.}95$ million of perpetual debt and use the proceeds to repurchase

common stock. The bonds will sell at par with a $6$ percent annual coupon rate. Green is currently an all$-$equity firm worth $$5\mathrm{.}43$ million

with $350,000$ shares of common stock outstanding. After the sale of the bonds, Green will maintain the new capital structure

indefinitely. Green currently generates annual pretax earnings of $$1\mathrm{.}45$ million. This level of earnings is expected to remain constant in

perpetuity. Green is subject to a corporate tax rate of $40$ percent. $($Do not round intermediate calculations. Round the final answer to

$2$ decimal places. Omit $ sign in your response.$)$

a$.$ What is the expected return on Green's equity before the announcement of the debt issue?

Expected return

b$.$ What is the price per share of the firm's equity?

Price $$,$ per share

c$.$ This part of the question is not part of your Connect assignment.

d$.$ What is Green's stock price per share immediately after the repurchase announcement?

New share price

e$-1.$ How many shares will Green repurchase as a result of the debt issue?

Shares repurchased

e$-2.$ How many shares of common stock will remain after the repurchase?

New shares outstanding

f$.$ This part of the question is not part of your Connect assignment.

g$.$ What is the required return on Green's equity after the restructuring?