Assume that Midco Industries wants to boost its stock price. The company currently has 20 million shares outstanding with a market price of $15 per share and no debt. Midco has had consistently stable earnings and pays a 35% tax rate. Management announces its leverage recapitalization plan that it will borrow $100 million on a permanent basis, and they will use the borrowed funds to repurchase shares. You study the Modigliani-Miller (MM) theory with taxes and try to figure out at the announcement of the plan, the stock price of Midco is closest to OA. $17.2 B. $15.5 OC. $15.0 D. $16.8