You operate an$$ all$-$equity financed company in perfect markets and generate earnings before interest and tax of $$$$350$ comma $000.$ Your firm has just sold $$$$1\mathrm{.}6$ million worth of $5\mathrm{.}5\%$ coupon rate bonds and plans to use the proceeds to buy back outstanding shares of stock. Your$$ firm's industry requires a $10\mathrm{.}75\%$ ROA.

a$.$ Calculate the market price and required return for your$$ firm's stock just prior to the repurchase.

b$.$ Calculate the market price and required return for your$$ firm's stock just after the$$ repurchase?