Assume that the Knot Tubes Deniad Corporation (KTD) is forecasting annual operating income of 540 million, which is not expected to grow since KTD plans to pay all profits out in dividends each year, its tax rate is 40%, and it presently is financed by all equity (10 million shares) with stockholders requiring a 20% retum on their stock. W KID raises its debt ratio to 30% by borrowing at an interest rate of 10% and uses the funds to repurchase stock, what will be the new value of the stock per share? (Assume that stockholders will increase their required return to 25%) Select one: a. $20.73 b. $12.44 c. $ 11.71 d. $ 6.37