What is the expected return on equity before and after the announcement of the stock repurchase…

1. Sunagitate Industries Corp. is cunningning to satisfy segregate of its spiritless supply in the public market by issuing urbane debit. As a upshot, the debit-to-equity pertinency is expected to agitate from 40 percent to 50 percent. The annual attention liquidation on its uncollected debit amounts to $0.75 darling delay an attention objurgate at 10 percent. The expected rights anteriorly attention are $3.75 darling. There are no taxes in the state where Sunagitate operates.

(Treat the debit and rights as perpetuities to facilitate estimation.)

a. What is the entirety esteem of Sunagitate Industries Corp.?

b. What is the expected reappear on equity anteriorly and following the declaration of the supply satisfy cunning?

c. How would the supply figure modify at the declaration of the satisfy?