Macbeth Spot Removers is entirely equity financed with values as shown below:

Data

Number of shares $1,400$

Price per share $ $14$

Market value of shares $ $19,600$

Although it expects to have an income of $$1,900$ a year in perpetuity, this income is not certain. This table shows the return to stockholders under different assumptions about operating income. We assume no taxes.

Outcomes

Operating income $($$$)9001,4001,9002,400$

Suppose that Macbeth Spot Removers issues only $$4,060$ of debt and uses the proceeds to repurchase $290$ shares. The interest rate on the debt is $6\%.$

Calculate the equity earnings, earnings per share, and return on shares for each operating income assumption

b$.$ If the beta of Macbeth's assets is $0\mathrm{.}88$ and its debt is risk$-$free, what would be the beta of the equity after the debt issue? $($Round

your answers to $2$ decimal places.$)$