The expected pre-tax cash flows (EBIT) of Left Shoe Enterprises ("LSE") are $150,000 per annum in perpetuity. LSE is financed partly with perpetual debt yielding 10% (K_p) and has 100,000 shares outstanding with expected return of 22% (K_E). A twin company. Right Shoe Incorporated ("RSI"), is an all-equity firm with the same pre-tax cash flows (EBIT) and the same number of shares outstanding, currently trading at $4.50 per share. Both firms pay corporate taxes at 40%. (a) What is LSE's share price? (b) What is the value of LSEs tax shield?(c) Suppose that LSE announces that it is raising new equity to replace all of its outstanding debt and that this announcement is completely unanticipated by the market. What is the return on LSE's shares on the announcement date