KD Industries has 30 million shares outstanding with a market price of $20 per share and no debt. KD has had consistently stable earnings, and pays a 21% tax rate. Management plans to borrow $200 million on a permanent basis through a leveraged recapitalization in which they would use the borrowed funds to repurchase outstanding shares.

15) If KD can repurchase its existing shares at $20 per share, what will the new share price be after the transaction? A) $22.35 B) $22.00 C) $22.65 D) $22.10

answer is D. Need to know calculation no excel please. Thank you