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Realistic Co. has no debt and 7.8 million shares priced at $25/share. Their tax rate is 30%. If Realistic announces they are going to borrow
Realistic Co. has no debt and 7.8 million shares priced at $25/share. Their tax rate is 30%. If Realistic announces they are going to borrow $80 million of perpetual debt at 7.5% interest and use the money to repurchase shares, what will the new share price be after the repurchase?
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