Stephenson Real Estate Recapitalization Stephenson Real Estate Company was founded 25 years ago by the current CEO, Robert Stephenson. The company purchases real estate, including land and buildings, and rents the property to tenants. The company has shown a profi t every year for the past 18 years, and the shareholders are satisfi ed with the companys management. Prior to founding Stephenson Real Estate, Robert was the founder and CEO of a failed alpaca farming operation. The resulting bankruptcy made him extremely averse to debt fi nancing. As a result, the company is entirely equity fi nanced, with 12 million shares of common stock outstanding. The stock currently trades at $31.40 per share. Stephenson is evaluating a plan to purchase