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7 Big Blue Banana (BBB) is a clothing retailer with a current share price of...

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7 Big Blue Banana (BBB) is a clothing retailer with a current share price of $10.00 and with 25 million shares outstanding. Suppose that Big Blue Banana announces plans to lower its corporate taxes by borrowing $100 million and using the proceeds to repurchase shares. (Note, please provide your answer to two decimal places. For example, 12.34) a. Assuming perfect capital markets, the share price for BBB after this announcement is $ b. Assume that tax is the only capital market imperfection. Suppose that BBB pays corporate taxes of 35% and that shareholders expects the change in debt to be permanent. Assuming that capital markets are perfect except for the existence of corporate taxes, the share price for BBB after this announcement is $ C. Assume that capital markets are perfect except for the existence of corporate taxes and financial distress costs. Suppose that BBB pays corporate taxes of 35% and that shareholders expects the change in debt to be permanent. If the price of BBB's stock rises to $10.85 per share following the announcement, then the present value of BBB's financial distress costs is $ million

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