Parker& Thomas, Inc . (P& T) currently is an all equity firm with 20,000 shares of stock outstanding at a market price of $40 a share. The company's earnings before interest and taxes are $800,000 per year in perpetuity. The firm's dividend payout ratio is 100% and the firm has a tax rate of 40 percent. P&T has decided to add leverage to its financial operations by issuing $400,000 of debt at a 3% interest rate. This $400,000 will be used to repurchase shares of stock. You own 2,500 shares of P&T stock. As a result of the changes in the capital structure, the required rate of return for the shareholders will increase to 11.57 percent from 9.0 percent. What is the fair price the firm should offer to repurchase your shares?