PART IV Capital Structure and Dividend Policy

The company currently has a required return on assets of $14$ percent. Because of the higl debt level, the debt will carry a yield to maturity of $12\mathrm{.}5$ percent for the next five years. Whe the debt is refinanced in five years, they believe the new yield to maturity will be $8$ percent, CPI currently has $215$ million shares of stock outstanding that sell for $$29$ per share. Th$.$ corporate tax rate is $21$ percent. If Meg, Ben, and Brenton decide to undertake the LBO, wha is the most they should offer per share?