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Dabney Electronics currently hasno debt. Its ope rating income is $30 million and its tax rate is 40%. It pays out all of its net

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Dabney Electronics currently hasno debt. Its ope rating income is $30 million and its tax rate is 40%. It pays out all of its net income as dividends and has a zero growth rate. The current stock price is S60 per share, and it has 3.75 million shares of stock outstanding. If it moves to a capital structure that has 40% debt and 60% equity (based on market values its investment bankers believe its weighted average cost of capital would be 10%. stock price be if it changes to the new capital structure? what would its A. $43.66 B. $58.19 C. $48.00 D. $55.68

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