Question: Repeat parts (a) and (b) in Problem 1 assuming the company has a tax rate of 21%, a market-to-book ratio of 1.0 and the stock

Repeat parts (a) and (b) in Problem 1 assuming the company has a tax rate of 21%, a market-to-book ratio of 1.0 and the stock price remains constant. Can this be solved as well ?

Orginial problem- Second part is above.

Fujita, Inc., has no debt outstanding and a total market value of $222,000.
Earnings before interest and taxes, EBIT, are projected to be $18,000 if economic
conditions are normal. If there is strong expansion in the economy, the EBIT will
be 25% higher. If there is a recession, then EBIT will be 30% lower. The company
is considering a $60,000 debt issue with an interest rate of 7%. The proceeds will
be used to repurchase shares of stock. There are currently 7,400 shares outstanding.
Ignore taxes for this problem.

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