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Question 11 (1 point) The shares of Casas Corp trade for $15 today. Assume the company is fairly valued at this current price. The company has announced that it intends to repurchase 13.5% of its outstanding shares on an open market repurchase. Assume that the company is able to repurchase shares at a price of $16.00. There are 240 million shares outstanding prior to the repurchase. Assume that the company is all equity financed. What will the stock price be after the repurchase? Round your answer to 2 decimal places. That is, if your answer is $3.2459, write 3.25 . Your Answer: Answer Question 12 (1 point) At the end of the current year, analysts expect BlackBerry's EBIT to be $17.5M and they expect the same earnings annually in perpetuity. The cost of unlevered equity for the company is 11%. The company has 10M shares outstanding and $10M of debt outstanding. The company is rated AAA and bondholders demand a yield of 5%. The management of the company believes that the company is under-levered. To increase the leverage, the management proposes to repurchase 1M shares at a price of $11.26 per share. The repurchase will be financed by additional borrowing. Analysts expect distress costs of $1M as a result of the debt increase. The corporate tax rate is 28%. What is the value of the firm after the repurchase? Write your answer in millions, to two decimal places. That is, if your answer is $8,340,500,000, write 8340.50 . Your Answer: Question 11 (1 point) The shares of Casas Corp trade for $15 today. Assume the company is fairly valued at this current price. The company has announced that it intends to repurchase 13.5% of its outstanding shares on an open market repurchase. Assume that the company is able to repurchase shares at a price of $16.00. There are 240 million shares outstanding prior to the repurchase. Assume that the company is all equity financed. What will the stock price be after the repurchase? Round your answer to 2 decimal places. That is, if your answer is $3.2459, write 3.25 . Your Answer: Answer Question 12 (1 point) At the end of the current year, analysts expect BlackBerry's EBIT to be $17.5M and they expect the same earnings annually in perpetuity. The cost of unlevered equity for the company is 11%. The company has 10M shares outstanding and $10M of debt outstanding. The company is rated AAA and bondholders demand a yield of 5%. The management of the company believes that the company is under-levered. To increase the leverage, the management proposes to repurchase 1M shares at a price of $11.26 per share. The repurchase will be financed by additional borrowing. Analysts expect distress costs of $1M as a result of the debt increase. The corporate tax rate is 28%. What is the value of the firm after the repurchase? Write your answer in millions, to two decimal places. That is, if your answer is $8,340,500,000, write 8340.50 . Your

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