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Assume that company A wants to boost its stock price. The company currently has 2 0 million shares outstanding with a market price of $

Assume that company A wants to boost its stock price. The company currently has
20 million shares outstanding with a market price of $24 per share and no debt. A
has had consistently stable earnings, and pays a 15% tax rate. Management plans to
borrow $10 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)?
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