Hi, I have one question that I cannot seem to solve.

Assume That A company generate annual sales of $2.125.000 using total assets of $500.00. It has an operating profit margin (EBIT/sales) of 45%, a tax rate of 35%, and 100.000 shares of common stock outstanding. These shares have a par value of $5 per share. Currently, the company is financed solely with common stock, but its management is considering selling sufficient debt to bring it debt to 45%. The debt securities, which will carry an interest rate of 15%, will be used repurchase an equal value shares of common stock, with the shares valued at their par value. Given the information, answer the following questions:

1) What is the firm's current net income?

2) What is the firm's current earnings per share?

3) How many shares of common stocks will the firm have outstanding if it sells it new debt?

4) What will be the firm's earnings per share if it sells the new debt?