Suppose a company produces a perpetual cash flow of $25 million per year and is expected to continue doing so in the infinite future. The company's capital structure currently consists entirely of ordinary equity, and the cost of ordinary equity capital is 10%. The company's share is currently trading in the market for $5 per share. The company plans to buy back 20% of the outstanding shares at the market price by borrowing the equivalent amount at 5% p.a. interest rate. (a) Assume the debt will be outstanding for the infinite future and the Modigliani and Miller (M&M) Propositions hold. Determine the company's market value of ordinary equity capital before share buy-back. (b) Considering the result from (a) and the share price given in the question, determine the number of outstanding shares for the company. (c) Considering the result from (b) and given information in the question, determine the number of shares being bought back by borrowing. (d) Considering the result from (c) and given information in the question, determine the amount of borrowing. (e) Assume the debt will be outstanding for the infinite future, and the M&M Propositions hold. Determine the company's cost of ordinary equity capital after share buy-back. (f) Determine the value of each share after the share buyback. Ignore tax. Show all relevant calculations. (g) Suppose the corporate tax rate is 20%. Determine the present value of the tax shield for an amount borrowed as determined in (d).