Taco Salad Manufacturing, Inc., plans to announce that it will issue $$2\mathrm{.}13$ million of

perpetual debt and use the proceeds to repurchase common stock. The bonds will sell

at par with a coupon rate of $5$ percent. The company is currently all$-$equity and worth

$$6\mathrm{.}60$ million with $196,000$ 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\mathrm{.}37$ million are expected to remain constant in perpetuity. The tax

rate is $21$ percent.

a$.$ What is the expected return on the company's equity before the announcement of

the debt issue? $($Do not round intermediate calculations and enter your answer as

a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What is the price per share of the company's equity? $($Do not round intermediate

calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

d$.$ What is the company's stock price per share immediately after the repurchase

announcement? $($Do not round intermediate calculations and round your answer

to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

e$-1.$ How many shares will the company repurchase as a result of the debt issue? $($Do

not round intermediate calculations and round your answer to $2$ decimal places,

e$.$g$.,32\mathrm{.}16.)$

e$-2.$ How many shares of common stock will remain after the repurchase? $($Do not round

intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

g$.$ What is the required return on the company's equity after the restructuring? $($Do not

round intermediate calculations and enter your answer as a percent rounded to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$