This is the scenario:Hightower, Inc. plans to issue $2.0 million of perpetual debt. The earnings from the issuance will be used to buy back shares of common stock. The bonds will sell at face value with a coupon rate of 5%. Our company is currently an unlevered company valued at $7.5 million with 400,000 share of common stock outstanding. After the sale of bonds, Hightower, Inc. will have a new capital structure, which will remain in place indefinitely. Currently our company generates yearly pretax earnings of $1.5 million, which is expected to remain constant. In accordance with the directives of management, we have analyzed Hightowers current and proposed capital structure in an effort to assess the effect of debt issuance on the stock value of Hightower, Inc

• Whatistherequiredreturnonthecompany'sequityaftertherestructuring?

Please explain well, cause I dont understand how to calculate the answer