Lomnolt Manufacturing Limited is a small listed company which has a strategy Of maintaining a $1 million book-value capital structure. Lomholt Manufacturing Limited currently earns $250,000 per year before corporate taxes of 50%, has an all-equity capital structure of 100,000 shares and distributes all of its earnings as dividends. The company is considering issuing debt and using the proceeds to repurchase shares. The company is able to repurchase shares at the current price of $10 per share. The Chief Financial Officer (CFO) of the company has provided the following estimates for the cost of debt and resulting share price for the company's equity at various potential debt levels