Bynum Tools has no debt in its current financial structure. The firm expects perpetual annual before-tax cash flows of $45 million and has a marginal corporate tax rate of 30 percent. There are currently 2 million shares of stock outstanding with a required return on equity of 12 percent. Bynum is currently planning a recapitalization under which it will issue $100 million of perpetual debt having an interest rate of 5 percent. The proceeds of the debt issue will be used to repurchase stock. Determine,

(a) the post-recapitalization share price,

(b) the post-recapitalization earnings per share,

(c) the required return on equity,

(d) the weighted average cost of capital,

(e) the remaining number of shares outstanding following the recapitalization.