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ABC Plc is a restaurant group with 7 5 million shares trading at 1 0 / share and 2 5 0 million in debt outstanding.
ABC Plc is a restaurant group with million shares trading at share and million in debt outstanding. The firm is considering borrowing money to buy back million shares at share and believes that this recapitalisation will lower its cost of capital from to Assuming a growth rate in perpetuity, estimate the value per share after the recapitalisation.
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