A. An all-equity firm that pays a 21% corporate income tax has 250,000 shares outstanding, a cost of capital of 15% and generates perpetual annual EBIT of $2.95 Million. According to the M&M theories of capital structure, what is the unlevered firms stock price per share? (Note that you may ignore any impact of personal taxes.) Enter your answer rounded to two decimal places.

B. The firm in part A plans to borrow $8 Million at 7% annual interest to retire some equity. According to the M&M theories, after the recapitalization, what would be the levered firms stock price per share? Enter your answer rounded to two decimal places.

C. Using the levered firms data in part A and B, what would be the levered firms cost of equity after the recapitalization? Enter your answer rounded to two decimal places.