Pastoral Company is a debt-free company, with the corporate income tax rate of 30%, the company's equity capital cost of 20%, and the market value of 6 million yuan.

After issuing bonds, the equity capital cost of pastoral company ke' = ke+(ke-KD) * (1-t) * d/e.

Among them, Ke is 20% of the cost of equity capital without debt, Kd is 10% of the cost of capital before debt, T income tax rate is 30%, D is the market value of debt 2 million, and E is the market value of equity.

ke ' = 20%+(20%- 10%)*( 1-30%)* 200/E = 20%+ 14/E

In the absence of liabilities, the market value of equity =EBIT/ Ke =EBIT/20%=600, EBIT=600*20%= 120.

Annual interest rate =200* 10%=20. After issuing bonds, the pre-tax profit = 120-20= 100.

Market value of equity E= profit before tax/ke' =100/(20%+14/e)

E= 100/(20%+ 14/E)

Solve the equation, E=430

After issuing bonds, the stock market value of Tianyuan Company is 4.3 million yuan.