Skyrocket Electronic Company (SEC) is an all-equity firm. The number of ordinary shares outstanding is 1,000,000, which are currently selling for $30 each. The firms Earnings Before Interest and Taxes (EBIT) is expected to be $3,600,000 per year for the foreseeable future. The companys current earning per share is $3.60. The management of the firm is considering a recapitalization plan to include financial leverage in its capital structure. The recapitalization plan involves issuing long-term debt at an interest rate of 6% and using the whole proceed to re-purchase its ordinary shares at its current market price. The sole objective of this recapitalization plan is to increase its EPS by 50% (i.e., from $3.60 to $5.40). As a financial analyst you have been approached by the management of SEC Company to determine the debt-equity ratio that will help the company achieve its EPS target (Assume the company does not pay any tax). You need to show detailed calculations including the amount of long-term debt to be issued, number of ordinary shares to be re-purchased and the debt-equity ratio.