Exis Inc. currently has a share price of $50 and 100 million shares outstanding. In addition, the firm currently has $800 million in debt and no excess cash. The firm is planning on conducting a levered recapitalization. As part of this transaction, the firm plans on issuing an additional $1,000 million of debt in the form of a perpetual bond to conduct a share repurchase (i.e. the full $1,000 million will be paid out to shareholders through a share repurchase). The cost of debt on the perpetual bond will be 5.5%. Exis has an unlevered cost of capital of 12% and a marginal corporate tax rate of 20%. Using the APV method, calculate the share price of Exis Inc. after it conducts the share repurchase. Select one.

	I.	$52
	II.	$38
	III.	$42
	IV.	$50
	V.	$40