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Business, 01.05.2021 01:00 lamashermosa23

is currently an all equity firm. Its current cost of equity is 10 percent and the tax rate is 18 percent. The firm has 300,000 shares of stock outstanding with a market price of $54 a share. The firm is considering capital restructuring that allows $1 million of debt with a coupon rate of 5 percent. The debt will be sold at par value and the proceeds will be used to repurchase shares. What is the value per share after the recapitalization

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