ABC Corp. is a clothing retailer with a current share price of $10.00 and with 25,000,000 shares outstanding. Suppose that ABC announces plans to change its capital structure by borrowing $100,000,000 and using the proceeds to repurchase shares. Suppose ABC pays corporate taxes of 35.00% and that shareholders expect the change in debt to be permanent. Assume that capital markets are perfect except for the existence of corporate taxes and financial distress costs, and semi-strong form market efficiency holds. If the price of ABC's stock rises to $10.85 per share following the announcement, then the expected present value of ABC's financial distress costs is closest to: