Question: Please help me solve the following. I have submitted this question several times and you always say that it needs more information, but I have
Please help me solve the following. I have submitted this question several times and you always say that it needs more information, but I have submitted everything the question gives. Please see the screen shot below:

Macbeth Spot Removers is entirely equity financed with values as shown below: Data Number of shares 1,300 Price per share 13 Market value of shares 16,900 Although it expects to have an income of $1,800 a year in perpetuity, this income is not certain. This table shows the return to stockholders under different assumptions about operating income. We assume no taxes. Outcomes Operating income ($) 300 1,300 1,800 2,300 Suppose that Macbeth Spot Removers issues only $3,640 of debt and uses the proceeds to repurchase 280 shares. The interest rate on the debt is 7%. a. Calculate the equity earnings, earnings per share, and return on shares for each operating income assumption. (Input all values as a positive number. Round your "Earnings per share" answers to 2 decimal places. Enter your "Return on shares" answers as a percent rounded to 2 decimal places. Round the other answers to the nearest whole number.) Outcomes Operating income ($) 800 1,300 1,800 2,300 Interest Equity earnings ($) Earnings per share ($) Return on shares (%) b. If the beta of Macbeth's assets is .86 and its debt is risk-free, what would be the beta of the equity after the debt issue? (Round your answers to 2 decimal places.) All-equity beta Debt beta D/E ratio Equity beta
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