T Tenacious X-ray (TX) is an all-equity firm operating in a perfect capital market with 20 million shares outstanding at a current price of $5 per share. TX plans to increase leverage by borrowing $20 million and using the funds to repurchase 8 million of its outstanding shares.

What is the initial value of the assets?

What is the initial value of the equity?

What is the value of the assets after borrowing $20 million?

What is the value of the equity after borrowing $20 million?

What is the value of the assets after repurchasing the shares?

What is the value of the equity after repurchasing the shares?

What is the price per share of the remaining shares outstanding?