PART 2: NUMERICAL QUESTIONS 1. Tefler Corp. 10 pes -Income taxes are 38% - Tefler Corp, is currently an all-equity firm. (No debt) - Tefler has 16 million shares outstanding -The stock is trading at $ 24 per share on December 31, 2020 -Telfer will announce a share repurchase and will complete the following actions: Borrow $ 80 million at an interest rate of 5% on December 31, 2020 and Use the cash proceeds to repurchase shares at the appropriate price after the announcement, CALCULATE the new market price of Telfer shares and the new adjusted shares outstanding. The following table is useful for your answers. Show your work. Initial Step 1: Recap Announced Market Value Balance Sheet Assets Cash Original Int. Tax Shield Total Liabilities Debt Equity Shs. Outs Price per Share - god - TG 80 F Step 2: Issue Debt 80 24 What are (i) the new share price and (ii) new shares outstanding? 80 Step 3:Share Repurchase SD 1-52 81-52 80 15.6 22-50 Second part: Answer, and explain your answer briefly, to receive full credit. A) Do you expect Telfer's after tax WACC to increase or decrease after the repurchase? B) Do you expect Telfer's expected return on equity (ROE) to increase or decrease after the repurchase