Taco Salad Manufacturing, Inc., plans to announce that it will issue $1.6 million of perpetual debt and use the proceeds to repurchase common stock. The bonds will sell at par with a coupon rate of 6 percent. The company is currently all-equity and worth $6.1 million with 280,000 shares of common stock outstanding. After the sale of the bonds, the company will maintain the new capital structure indefinitely. The annual pretax earnings of $1.45 million are expected to remain constant in perpetuity. The corporate tax rate is 21 percent. a. What is the expected retum on the company's equity before the announcement of the debt issue? Question 2 b. What is price per share before the announcement of the debt issue? Question 3 1 pts c. What is the market value of the firm (in millions) immediately after the announcement of the debt issue? Question 4 1 pts d. What is the stock price per share immediately after the announcement of the debt issue? Question 5 1 pts e. How many shares will the company repurchase as a result of the debt issue? Question 6 1 pts f. What is the cost of equity after the recapitalization