Assume that company A wants to boost its stock price. The company currently hasAssume that company A wants to boost its stock price. The company currently has

$20$ million shares outstanding with a market price of $$11$ per share and no debt. A

has had consistently stable earnings, and pays a $30\%$ tax rate. Management plans to

borrow $$40$ million on a permanent basis and they will use the borrowed funds to

repurchase outstanding shares. If shareholders are perfectly rational and informed,

what will the repurchase price per share be $($keep two decimal places and assume

that the new borrowing will not have any negative effects$)?$