hello, can you please help me with C and D

Yerba Industries is anall-equity firm whose stock has a beta of 1.20 and an expected return of 17.5%. Suppose it issues newrisk-free debt with a

3.5% yield and repurchase 40% of its stock. Assume perfect capital markets.

a. What is the beta of Yerba stock after thistransaction?

The beta of Yerba stock after this transaction is 2. (Round to two decimalplaces.)

b. What is the expected return of Yerba stock after thistransaction?

The expected return of Yerba stock after this transaction is 26.83%. (Round to two decimalplaces.)

Suppose that prior to thistransaction, Yerba expected earnings per share this coming year of

$4.00, with a forwardP/E ratio(that is, the share price divided by the expected earnings for the comingyear) of 10

c. What isYerba's expected earnings per share after thistransaction? Does this change benefit theshareholder? Explain.

If prior to thetransaction, Yerba expected earnings per share this coming year of $ 4.00

$4.00, with a forwardP/E ratio of 10, Yerba's expected earnings per share after this transaction is $.................. (Round to the nearestcent.)

d. What isYerba's forwardP/E ratio after thistransaction? Is this change in theP/E ratioreasonable? Explain.