Use the following information for questions 17 and 18: Powell Plastics, Inc. (PP) currently has zero debt. Its free cash flow last year was $48,000, and it is a zero growth company. PP's current cost of equity is 10%, and its tax rate is 40%. The firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. PP is considering moving to a capital structure that is comprised of 30% debt and 70% equity. The debt would have an interest rate of 8%. The new funds would be used to repurchase stock. It is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. If this plan were carried out, what would be PP's new value of operations? Use the following information for questions 17 and 18: Powell Plastics, Inc. (PP) currently has zero debt. Its free cash flow last year was $48,000, and it is a zero growth company. PP's current cost of equity is 10%, and its tax rate is 40%. The firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. Assume that PP is considering changing from its original capital structure to a new capital structure that results in a weighted average cost of capital equal to 9.4% and a new value of operations of $510,638. Assume PP raises $178,723 in new debt and purchases T-bills to hold until it makes the stock repurchase. PP then sells the T-bills and uses the proceeds to repurchase stock. How many shares remain after the repurchase, and what is the stock price per share immediately after the repurchase? \begin{tabular}{|r|} \hline 7,000;$51.06 \\ \hline 7,000;$53.33 \\ \hline 6,500;$51.06 \\ \hline 6,500;$53.33 \\ \hline 6,500;$59.57 \end{tabular}