SparkyCo currently has annual revenues of $$1,000,000$ per year with cash operating expenses of $$500,000,$ and depreciation expense of $20,000$ into the perpetual future. The cost of unlevered equity is $10\%$ and its tax rate is $30\%.$ The firm currently has no debt. For our purposes, assume that the firm purchases no new fixed assets and the change in WC is zero. Assume the firm has $10,000$ shares outstanding.

a$)$ Calculate the unlevered cash flow $($UCF$)$ per year for SparkyCo.

b$)$ Calculate the current value of the firm as well as the price per share.

c$)$ SparkyCo will now issue $$500,000$ of perpetual debt at a $6\%$ interest rate and use the proceeds to repurchase shares of its stock. What will be the value of the firm after the debt issuance and share repurchase?