AG is financed by common stock and has a beta of 1.0. The firm pays no
taxes, The stock has a p/e multiple of 10 and is priced to offer 10%
expected return. The comp. decides to repurchas half the common stock
and sub and equal value of debt. If the yields a risk-free 5%,
calculate
a. beta of the common stock after refinancing
b. the required return and risk premium on the common stock before the refi.
c. the required return and risk premium on the common stock after the refi.
d. the required return on the debt.
e. the required return on the company (stock and debt combined) after refi
    Assume that the operating profit of the firm is expected to remain
constant. Give

f. the % increase in earnings per share after the refi
g. the new p/e multiple hint: has anything happened to the stock price?