Q1' A corporation has 300 million outstanding shares and a current profit before taxes of $900 million. The firm has no debt, and the market value of its shares is $9'600 million. The corporation tax rate is 1-24%. The company chooses to raise $1 billion in risk-free financing, which will be maintained eternally. a. a. What is the stock price and after-tax profits per share after the debt offering if the company invests the $1 billion in secure government bonds? b. The corporation repurchases all outstanding shares using the proceeds from the debt offering. What is the price of the shares after the repurchase? c. In which situation(s) are the firm's shareholders better off? No debt issued, no shares repurchased Debt issued but no shares repurchased Debt issued and shares repurchased Q1' A corporation has 300 million outstanding shares and a current profit before taxes of $900 million. The firm has no debt, and the market value of its shares is $9'600 million. The corporation tax rate is 1-24%. The company chooses to raise $1 billion in risk-free financing, which will be maintained eternally. a. a. What is the stock price and after-tax profits per share after the debt offering if the company invests the $1 billion in secure government bonds? b. The corporation repurchases all outstanding shares using the proceeds from the debt offering. What is the price of the shares after the repurchase? c. In which situation(s) are the firm's shareholders better off? No debt issued, no shares repurchased Debt issued but no shares repurchased Debt issued and shares repurchased