$2.$ ABC, Inc has no debt. It has $10$ million shares outstanding trading at $$60$ per share, and an expected return on equity of $16\%.$ Suppose the company plans to issue $$200$ million of debt and use the proceeds to repurchase shares. The cost of debt will be $4\%.$ Assume that there are no taxes and no costs of financial distress, so the Modigliani$-$Miller propositions hold. a$.$ What will be the market capitalization after the change in capital structure $($ie after the debt issue and the share repurchase$)?$ b$.$ What will be the expected return on equity after the change in capital structure $($ie after the debt issue and the share repurchase$)?$