Round your answers to 2 decimal places (only if necessary). Use the following information to answer the question(s) below. Kurz Industries is an all-equity firm whose stock has a beta of 1.2 and an expected return of 12%. Suppose it issues new risk-free debt with a 4% yield and repurchases 60% of its stock. Assume perfect capital markets. a) What is the expected return of Kurz stock after this transaction? Suppose that prior to this transaction, Kurz expected earnings per share this coming year of $2. The share price was $26, implying a forward P/E ratio (that is, the share price divided by the expected earnings for the coming year) of 13. b) What is Kurz's expected earnings per share after this transaction? c) What is Kurz's forward P/E ratio after this transaction? Is this change in the P/E ratio reasonable? Explain