Newkirk, Inc., is an unlevered firm with expected annualearnings before taxes of $21.7 million in perpetuity. The currentrequired return on the firm’s equity is 16 percent, and the firmdistributes all of its earnings as dividends at the end of eachyear. The company has 1.37 million shares of common stockoutstanding and is subject to a corporate tax rate of 35 percent.The firm is planning a recapitalization under which it will issue$30.7 million of perpetual 9.7 percent debt and use the proceeds tobuy back shares. a-1. Calculate the value of the company before the recapitalizationplan is announced. (Enter your answer in dollars, notmillions of dollars, e.g., 1,234,567. Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)      Current value $        a-2. What is the price per share? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g.,32.16.)      Price per share $       b-1. Use the APV method to calculate the company value after therecapitalization plan is announced. (Enter your answer indollars, not millions of dollars, e.g., 1,234,567. Do not roundintermediate calculations and round your answer to the nearestwhole number, e.g., 32.)      Value after recapitalization $       b-2. What is the price per share after the recapitalization isannounced? (Do not round intermediate calculations andround your answer to 2 decimal places, e.g., 32.16.)      Price per share $         c-1. How many shares will be repurchased? (Enter your answerin dollars, not millions of dollars, e.g., 1,234,567. Do not roundintermediate calculations and round your answer to the nearestwhole number, e.g., 32.)      Shares repurchased       c-2. What is the price per share after the recapitalization andrepurchase? (Do not round intermediate calculations andround your answer to 2 decimal places, e.g., 32.16.)       Price per share $        d. Use the flow to equity method to calculate the value of thecompany’s equity after the recapitalization. (Enter youranswer in dollars, not millions of dollars, e.g., 1,234,567. Do notround intermediate calculations and round your answer to thenearest whole number, e.g., 32.)      Value of the equity $