Phylo Inc. currently has 7 million shares outstanding, trading at $24.68. The stock's beta is 1.2. The book value of equity is $51.83 million, and the book value of long-term debt is 0. Treasuries yield 1.3% and the expected return on the S&P 500 is 5%.

The company is thinking of issuing 21,000 bonds with a par value of $1,000 to repurchase its own stock. The yield to maturity on similar bonds issued by other companies is 5%. The average tax rate is 34%.

Part 1

What is the current market value of equity (in $ million)?

Part 2

What is the total current value of the company before announcing the restructuring (in $ million)?

Part 3

What is the company's current WACC?

Part 4

How much debt does the company want to issue (in $ million)?

Part 5

What is the annual interest tax shield of the debt (in $ million)?

Part 6

What is the value of the company after the restructuring (in $ million)?

Part 7

What is the new value of equity (in $ million)?

Part 8

What is the new stock price?

Part 9

How many shares will be outstanding after the restructuring (in million)?