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4.Macbeth Spot Removers is entirely equity financed with values asshown below:DataNumber of shares1,800Price per share$18Market value of shares$32,400Although it expects to have an income of $2,300 a year inperpetuity, this income is not certain. This table shows the returnto stockholders under different assumptions about operating income.We assume no taxes.OutcomesOperating income ($)1,3001,8002,3002,800Suppose that Macbeth Spot Removers issues only $3,780 of debtand uses the proceeds to repurchase 210 shares. The interest rateon the debt is 10%.a. Calculate the equity earnings, earnings pershare, and return on shares for each operating income assumption.(Input all values as a positive number. Round your"Earnings per share" answers to 2 decimal places. Enter your"Return on shares" answers as a percent rounded to 2 decimalplaces. Round the other answers to the nearest wholenumber.)OutcomesOperating income ($)InterestEquity earnings ($)Earnings per share ($)Return on shares (%)b. If the beta of Macbeth's assets is .96 andits debt is risk-free, what would be the beta of the equity afterthe debt issue? (Round your answers to 2 decimalplaces.)All-equity betaDebt betaD/E ratioEquity beta