A company has assets of $$10$ million, all equity$-$financed, with a net income of $$2$ million, paying out $50\%$ as dividends. Both net income and dividends grow at a constant rate of $4\%$ per year. There are $500,000$ shares outstanding, and the current cost of capital is $12\%.$

What is the current share price of the stock?

Assume the company in Practice Question $1$A issues $$2$ million in debt and uses the proceeds to repurchase stock. The before$-$tax cost of debt is $10\%,$ the cost of equity rises to $13\%,$ and the tax rate is $30\%.$

If the company maintains the same payout ratio, what will be the stock price after recapitalization?