Monroe Inc. is an all-equity firm with 400,000 shares outstanding. It has $2,000,000 of operating income (EBIT), and EBIT is expected to remain constant in the future. The company pays out all of its earnings, so earnings per share (EPS) equal dividends per share (DPS), and its marginal tax rate is 25 percent. The company is considering issuing $3,000,000 of bonds at a coupon rate of 5.0 percent and using the proceeds to repurchase stock. The firm' current cost of equity is 10.0 percent and the CFO believes it would rise to 10.75 percent if the recapitalization occurs. Assuming the shares could be repurchased at the price that existed prior to the recapitalization of $37.50, what would the price per share be following the recapitalization? https://siu.instructure.com/files/4063481/download?download_frd-1 O $43.40 O $37.50 O $31.07 $40.33 $32.27