Question $1(1$ point$)$

Albemarle Corporation, currently an all$-$equity firm with $28\mathrm{.}00$ million shares

outstanding, each worth $9\mathrm{.}00,$ is considering borrowing $69\mathrm{.}50$ to repurchase some

of its stocks. Once the loan is issued, the corporation plans to maintain its capital

structure constant. Albemarle is subject to a $15\mathrm{.}00\%$ corporate tax rate. At what

price will Albemarle repurchase its shares?

Instructions: Round the result to two decimal places and do not put the $""$ symbol in

the answer box. For example if you get a result of $13\mathrm{.}5412$ then write $13\mathrm{.}54$ in the

answer box below.

Your Answer:

Answer