Problem $16-6$ MM proposition $1$ Executive Cheese has issued debt with a market value of $\backslash (\backslash$$ $100\mathrm{.}71\backslash )$ million and has outstanding $15\mathrm{.}10$ million shares with a market price of $\backslash (\backslash$$ $10\backslash )$ a share. It now announces that it intends to issue a further $\backslash (\backslash$$ $59\mathrm{.}29\backslash )$ million of debt and to use the proceeds to buy back common stock. Debtholders, seeing the extra risk, mark the value of the existing debt down to $\backslash (\backslash$$ $69\backslash )$ million. a$-1.$ Calculate the market price of the stock following the announcement. Note: Do not round Intermedlate calculatlons. Round your answer to $\backslash (\backslash$mathbf$\{2\}\backslash )$ decimal places. $\backslash (0-2\backslash ).$ How is the market price of the stock affected by the announcement? b$.$ How many shares can the company buy back with the $\backslash (\backslash$$ $59\mathrm{.}29\backslash )$ million of new debt that it issues? Note: Do not round Intermedlate calculations. Enter your answer In millions. Round your answer to $1$ decimal place. c$-1.$ What is the market value of the firm $($equity plus debt$)$ after the change in capital structure? Note: Do not round Intermedlate calculations. Enter your answer In millions. Round your answer to $\backslash (\backslash$mathbf$\{2\}\backslash )$ decimal places. $\backslash (\backslash$mathbf$\{$c $-2\}\backslash ).$ Did the market value of the firm change? d$.$ What is the debt ratio after the change in structure? Note: Do not round Intermedlate calculatlons. Round your answer to $\backslash (\backslash$mathbf$\{2\}\backslash )$ decimal places. e$.$ Who $($if anyone$)$ gains or loses?