Refi Corporation is planning to repurchase part of its common stock by issuing corporate debt. As a result, the firm's debt-equity is expected to rise from 35 percent to 50 percent. The firm currently has $2.7 million worth of debt outstanding. The pretax cost of debt is 6.4 percent. The firm expects to have an aftertax earnings of $940,000 per year in perpetuity. The corporate tax rate is 21 percent.

a. What is the expected return on the equity before the repurchase announcement?

b. What is the return on assets for the firm? (Hint: use MM Proposition II with tax.)

c. What is the expected return on the firm's equity after the repurchase announcement?

d. What is the weighted-average cost of capital for the company after the repurchase announcement?

(Please show work and explain. Thank you!)