Last Minute Company currently has a debt-equity ratio of 1/9. The stock price is $50 and there are 180,000 shares outstanding. The CFO is proposing a recapitalization plan to borrow $2,000,000 and use the proceeds to buy back shares. They can borrow at 5% and their tax rate is 40%.

Based on this information, please fill in the following blanks.

1. The market value of the equity after the repurchase has taken place is $

2. The number of shares repurchased is (round to the nearest integer please)

3. The share price per share after the repurchase has been announced (use 2 digits after the decimal please) $

4. The hypothesis which explains the immediate reaction of the stock price to the repurchase announcement is called the hypothesis.