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please answer all three parts to the question and pick the multiple choice answers Your all equity firm has a price per share of $18

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please answer all three parts to the question and pick the multiple choice answers
Your all equity firm has a price per share of $18 and has 7M shares outstanding. Suppose the firm issue $12M worth of debt. The debt has a face value of $12M, a coupon rate of 7 percent, and 8 years until maturity. The expected return on the debt is 7 percent. Assume a corporate tax rate of 35% What is the value of tax shield for issuing this debt? 4.20M 2.05M 1.76M What is the new share price after issuing this debt? 18.00 18.25 O 18.60 If the debt were perpetual, what would be the new share price after the debt issuance? 18.60 18.25 18.00

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