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ABC is currently an all-equity firm. It has 12 million shares outstanding. It expects to generate cash flows of $25.5 million per year in perpetuity.

ABC is currently an all-equity firm. It has 12 million shares outstanding. It expects to generate cash flows of $25.5 million per year in perpetuity. The corporate tax rate is 36%. The companys unlevered cost of equity is 8%. The company decides to borrow $65 million in permanent debt and repurchase some of it outstanding shares. What will be price per share after the debt issue is completed and the shares are repurchased?

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