Problem 5.6 (10 pts) A manufacture company is unlevered and has 2 million shares out- standing with price 3. Given that the after tax return on equity is 12%. In order to increase return on equity, it borrows X and uses it to repurchase shares. It pays 6% interest on the loan. The corporate tax rate is 22%. Calculate the amount to borrow so that after tax return on equity is 20%