Refi Corporation is planning to repurchase part of its common stock by issuing corporate

debt. As a result, the firm's debt$-$equity ratio is expected to rise from $30$ percent to $50$

percent. The firm currently has $$27$ million worth of debt outstanding. The cost of this

debt is $9$ percent per year. The firm expects to have an EBIT of $$1\mathrm{.}26$ million per year in

perpetuity and pays no taxes.

a$.$ What is the market value of the firm before and after the repurchase announcement?

$($Do not round intermediate calculations and enter your answers in dollars, not

millions of dollars, rounded to the nearest whole number, e$.$g$.1,234,567.)$

b$.$ What is the expected return on the firm's equity before the announcement of the

stock repurchase plan? $($Do not round intermediate calculations and enter your

answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ What is the expected return on the equity of an otherwise identical all$-$equity firm? $($Do

not round intermediate calculations and enter your answer as a percent rounded to

$2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

d$.$ What is the expected return on the firm's equity after the announcement of the stock

repurchase plan? $($Do not round intermediote calculations and enter your onswer as

percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$