Recapitalization A proposed recapitalization plan for Focus Corporation would change its current all$-$equity capital structure to leveraged capital structure. The proposal is for Focus to sell $$49,000,000$ worth of long$-$term debt at an interest rate of $7\mathrm{.}75\%$ and then repurchase as many shares as possible at a price of $$22$ per share. Focus currently has $4,900,000$ shares outstanding and expects EBIT to be $$25,000,000$ per year in perpetuity. Ignoring taxes, calculate the following:

a$.$ The number of shares outstanding, the per$-$share price, and the debt$-$to$-$equity ratio for Focus if it adopts the proposed recapitalization.

b$.$ The earnings per share $($EPS$)$ and the return on equity $($ROE$)$ for Focus under the current and proposed capital structures.

c$.$ The EBIT where EPS is the same for both capital structures.

d$.$ The EBIT where EPS is zero for both capital structures.

a$.$ The number of shares outstanding for Focus if it adopts the proposed recapitalization is shares. $($Round to the nearest whole number.$)$

The per$-$share price for Focus if it adopts the proposed recapitalization is $$,($Round to the nearest dollar.$)$

The debt$-$to$-$equity ratio for Focus if it adopts the proposed recapitalization is $.($Round to two decimal places.$)$

b$.$ The earnings per share $($EPS$)$ for Focus under the current capital structure is $$.($Round to the nearest cent.$)$

The earnings per share $($EPS$)$ for Focus under the proposed capital structure is $$,.($Round to the nearest cent.$)$

The return on equity $($ROE$)$ for Focus under the current capital structure is

The return on equity $($ROE$)$ for Focus under the proposed capital structure is

c$.$ The EBIT where EPS is the same for both capital structures is $

$\%.($Round to two decimal places.$)$

$\%.($Round to two decimal places.$)$

$($Round to the nearest dollar.$)$

d$.$ The EBIT where EPS is zero for both capital structures is $$.($Round to the nearest dollar.$)$