LushCurls Inc. has a debt to equity ratio of 20% and $2,000,000 of debt with a before-tax cost of 6%. It has 500,000 shares of common stock outstanding and currently trading at $20. LushCurls has $1,620,000 of EBIT and the company pays out all of its earnings as dividends. Its tax rate is 40%. The company is considering using debt more aggressively and plans a recapitalization by issuing $2,000,000 more of bonds and using the proceeds to repurchase stock. This will raise the before-tax cost of all debt to 8%. The risk-free rate is 4.5%, the market risk premium is 5.0%, and the firm's beta is currently 0.90. a) What is LushCurlss current weighted average cost of capital and what will its new weighted average cost of capital be if LushCurls decides to go ahead with recapitalization? b) What would be the price per share following the recapitalization?