Wayne Enterprises generates perpetual annual EBIT of $150. (Assume that the EBIT, and all other cash flows, occurs at year end and that we are currently at the beginning of a year.) Wayne Enterprises has 1,300 shares outstanding. The stockholders of Wayne require a return of 10%. Assume that Wayne Enterprises is initially all-equity financed. It is considering an open market stock repurchase and plans to buy 5% of its outstanding shares at the price of $1.15 per share. The repurchased shares will be cancelled. It will finance the repurchase by issuing perpetual bonds with a coupon rate (and yield) of 8%. Assume that the tax rate is 0%. Answer the questions that follow.

Part 1 What is the value of Wayne Enterprises prior to the repurchase? (Round your answer to the nearest dollar.) $

Question 2 Part 2 What is the price per share for Wayne Enterprise stock prior to the repurchase? (Round your answer to the nearest cent.) $

Question 3 Part 3 If Wayne goes ahead with the repurchase, then what is the face value of the bonds that it will issue? (Round your answer to the nearest dollar.) $

Question 4 Part 4 If Wayne goes ahead with the repurchase, then what is the value of the company after the repurchase is complete? (Round your answer to the nearest dollar.) $

Question 5 Part 5 What is the stock price after the repurchase is complete? (Round your answer to the nearest cent.) $

Question 6 Part 6 What is the required return of stockholders for Wayne Enterprises after the repurchase is complete? (Express your answer in percentage form rounded to one decimal.) %

Question 7 Part 7 What is the WACC for Wayne Enterprises after the repurchase is complete? (Express your answer in percentage form rounded to one decimal.) %