Kurz Manufacturing is currently an all-equity firm with 39 million shares outstanding and a stock price of $7.50 per share. Although investors currently expect Kurz to remain an all-equity firm, Kurz plans to announce that it will borrow $39 million and use the funds to repurchase shares. Kurz will pay interest only on this debt, and it has no further plans to increase or decrease the amount of debt. Kurz is subject to a 40% corporate tax rate.

c. What is Kurz's share price just before the share repurchase? How many shares will Kurz repurchase?

d. What are Kurz's market value balance sheet and share price after the share repurchase?