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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 75 million shares trading at 10/share and 250 million in debt outstanding. The firm is considering borrowing money to buy back 25 million shares at 11/share, and believes that this recapitalisation will lower its cost of capital from 8% to 7.50%. Assuming a 2.5% growth rate in perpetuity, estimate the value per share after the recapitalisation.

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