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Modigliani & Muller Propositions You cperate an al-equity financed company in perfect markets and guneralo eamings before interest and tax of $550,000. Your fimt has

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Modigliani \& Muller Propositions You cperate an al-equity financed company in perfect markets and guneralo eamings before interest and tax of $550,000. Your fimt has just sold $1.6 million worth of 6.0% coupon rate bonds and plans to use the proceeds to buy back outstanding shaves of stock. Your firmis industry requires a 10.50%, ROA. a. Calculate the market pnce and required retum for your frm's stock just prior to the repurchase. b. Calculate the maket price and required return for your firm's stock just after the repurchase? a. The market price of your firm's stock just price to the repurchase is $ (Round to the nearest dollar)

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