please show work

Novalis Inc. was a firm with 120 million shares trading at $20/share, debt outstanding of $ 700 million and a cost of capital of 10%, prior to a recapitalization. It has just borrowed $950 million and completed a buyback of 40 million shares at $24/share. If the remaining shares trade at $30 after the buyback, estimate the cost of capital after the buyback. (You can assume that the company is in stable growth, growing 2% a year in perpetuity) O a. 14.14% O b. 10.36% O c. 6.23% O d. 8.12% Novalis Inc. was a firm with 120 million shares trading at $20/share, debt outstanding of $ 700 million and a cost of capital of 10%, prior to a recapitalization. It has just borrowed $950 million and completed a buyback of 40 million shares at $24/share. If the remaining shares trade at $30 after the buyback, estimate the cost of capital after the buyback. (You can assume that the company is in stable growth, growing 2% a year in perpetuity) O a. 14.14% O b. 10.36% O c. 6.23% O d. 8.12%