Greenwood Industries has 35000 shares outstanding with a current market price of 20 dollars per share and no debt. Greenwoods stock beta is 1.6. Greenwood has had consistently stable earnings, and pays a 35% tax rate. Management plans to borrow 200000 dollars on a permanent basis through a leveraged recapitalization in which they would use the borrowed funds to repurchase outstanding shares at the current market price. Assume the risk-free rate is 0.04 per annum and the market risk premium is 0.06 per annum. Answer the following questions 3(a) to 3(f). Note: For all the calculation questions, you are only allowed to write the numerical answer you calculated for the question, please DO NOT add $, %, dollars, million, thousand, percent, space, etc. in your answers.

(a): Estimate the companys cost of capital (as an all-equity firm) before the recapitalization.

b): Estimate the value of Greenwood's unlevered equity before the recapitalization.

c): Estimate the present value of Greenwood's interest tax shield if the company implements the leverage recapitalization.

d): What is the total value of Greenwood as a levered firm after the recapitalization?

e): What is the value of a share of Greenwood 's stock after the recapitalization?