How would your analysis in question 2 and 3 and recommendation in question 4 change if the new tax law is implemented? Please note that, with corporate taxes, the expected debt-to-equity ratio under the share repurchase plan is 0.588, and the number of remaining shares outstanding is 39.4 million. (Relates to M&M pizza case study: M&M Pizza is a pizza producer in Francostan, which is a small country with a population of 12 million, with stable economic conditions, and supportive government policies have increased the performance of the companyin terms of business. Economic policies have supported the company's stability, where inflation was about near to zero it had 4% of debt rate with no tax rule, which flourished the businesses in thecountry.

Moe Miller was a newly appointed managing director at M&M Pizza, who was about to implement a strategy to repurchase shares of F$500 million to increase the dividend per share. He also considered the government consideration of imposing 20% corporate tax.)

1. What impact does the repurchase plan have on M&M's weighted-average cost of capital?
2. What are the debt and equity claims worth under the alternative scenarios? You may note that the present value of perpetual cash flow stream is equal to the expected payment divided by the associated required return.
3. Which proposal is the best for investors?What do you recommend that Miller do?