v) What would be Martin's new number shares remaining after the repurchase? b) How does MM with taxes differ from trade-off theory of capital structure? You should provide the appropriate formulas and graphs Technee Inc. expects an EBIT of $4,000,000 for the current year. The firm's capital structure consists of 40 prapercent equity, and its marginal tax rate is 40 percent. The cost of equity is 16 percent, and the company pays a 10 percent rate on its $10,000,000 of long-term debt. One million shares of common stock are outstanding. For the next year, the firm expects to fund one large positive NPV project costing $2,000,000, and it will fund this project in accordance with its target capital structure. Ch If the firm follows a residual distribution policy (with all distributions in the form of dividends) and has no other projects, what is its expected dividend payout ratio and the dividend paid out per share in $? Compare and contrast tax-preference, bird-in-hand, and clientele effect theories of dividend policy a) b) . BONUS Question on Initial Public Offerings: i) What is initial public offering? ii) What are advantage and disadvantage of IPO? iii) What is money left on the table? iv) What is equity-carve-out