Question 5 Not yet answered Marked out of 5.00 Hardy Limited, an all-equity financed firm, has a current share price of $17 and 16 million shares outstanding. The firm announces that it plans to lower its corporate taxes by borrowing $170 million of perpetual debt and repurchasing shares. The firm pays taxes at 38.0%. What increase in price per share would you expect in a world without financial distress costs after the announcement? Flag question The increase in price per share should be $ (Round to three decimal places.) If the price per share rises to $19.95 after the announcement, what is the present value of financial distress costs? The present value of financial distress cost is $ million. (Round to three decimal places.) Previous page Next p