Purple Tulip (PT) Corporation is a clothing retailer with a current share price of $10.00 and with 25 million shares outstanding. It has no debt. Suppose that PT announces plans to borrow S100 million in order to repurchase shares. a) Assuming perfect capital markets, what is the share price for PT after this announcement? And why? b) Suppose that PT pays corporate tax of 35% and that shareholders expect the change in debt to be permanent. Assuming that capital markets are perfect except for the existence of corporate taxes, what is the share price for PT immediately after this announcement? c) Suppose that PT pays corporate taxes of 35% and that shareholders expect the change in debt to be permanent. Assume that capital markets are perfect except for the existence of corporate taxes and financial distress costs. If the price of PT's stock rises to $10.85 per share immediately following the announcement, what is then the present value of PT's financial distress costs? d) What is the cause of financial distress cost? Give two examples