Locomotive Corporation plans to buy back a portion of its common stock by issuing corporate debt. As a result, the debt-to-equity ratio is expected to increase from 40% to 50%. Today, the company has outstanding debt worth $4.3 million. The cost of this debt is 10% annually. Locomotive Corporation expects to have EBIT of $1.68 million per year in perpetuity. Locomotive Corporation does not pay taxes. a) What is the market value of Locomotive Corporation before and after the buyback announcement? b) What is the expected return on the company's capital before the announcement of the share repurchase plan? c) What is the expected return on equity for a company identical in every way except that it is entirely equity-financed? d) What is the expected return on the company's capital after the share repurchase plan?