Yerba Industries in an al-equity firm whose stock has a botn of 0.60 and an expected return of 19,6%. Supposo it issues new risk-free debt with a 6% yield and repurchase 55% of its stock. Assume perfect capital markets. a. What is the bota of Yerba stock after this transaction? b. What is the expected retum of Yerba stock after this transaction? Suppose that prior to this transaction. Yerba expected earnings per share this coming year of $1.60, with a forward P/E ratio (that is, the shore price divided by the expected comings for the coming year) of 13. o, What is Yerba's expected earnings per share after this transaction? Does this change benefit the shareholder? Explain, d. What is Yerba's forward P/E ratio after this transaction? Is this change in the P/E ratio reasonable? Explain