Macbeth Spot Removers is entirely equity financed with values as shown below: Data Number of shares Price per share Market value of shares 2,200 $ 22 $48,400 Although it expects to have an income of $2,700 a year in perpetuity, this income is not certain. This table shows the return to stockholders under different assumptions about operating income. We assume no taxes. Operating income ($) Outcomes 1,700 2,200 2,700 3,200 Suppose that Macbeth Spot Removers issues only $2,200 of debt and uses the proceeds to repurchase 100 shares. The interest rate on the debt is 6%. a. Calculate the equity earnings, earnings per share, and return on shares for each operating income assumption. (Input all values as a positive number. Round your "Earnings per share" answers to 2 decimal places. Enter your "Return on shares" answers as a percent rounded to 2 decimal places. Round the other answers to the nearest whole number.) Operating income ($) Interest Equity earnings ($) Earnings per share ($) Return on shares (%) 1,700 132 1,568 0.75 3.41 Outcomes 2,200 2,700 132 132 2,068 2,568 0.98 1.22 4.45 5.55 3,200 132 3,068 1.46 6.64 b. If the beta of Macbeth's assets is 1.04 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.) All-equity beta Debt beta D/E ratio Equity beta 1.09