MC.15,073 Question 17 of 21 Merriwether Building has operating income of $20 million, a tax rate of 25%, and no debt. It pays out all of its net income as dividends and has a zero growth rate. The current stock price is $27 per share, and it has 5 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%. What would its stock price be if it changes to the new capital structure? a. $35 b. $33 c. $30 O d. 528 O . $40 2 ENG 11:43 INTL 6/27/2020