4. How much debt is outstanding if the present value of a perpetual tax shield is $300,000, the tax rate is 21% and the interest rate on the debt is 10%?

5. Evenglade Corp has 1,000 shares outstanding priced at S10 a share. The company is unsure whether to pay out $1 a share as a dividend or to use the money to repurchase stock. If it pays a dividend, what happens to the stock price? If it repurchases, how many shares will remain and at what price?