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Suppose your company is an all equity firm. After several considerations, your company would like to change its capital structure by issuing $220,000 of debt.

Suppose your company is an all equity firm. After several considerations, your company would like to change its capital structure by issuing $220,000 of debt. The bank had agreed to lend your company at an interest rate of 8.1 percent. Currently, your company has 20,500 shares of stock outstanding. If the break-even level of EBIT under two capital structures is $157,000, what is the current stock price? Ignore taxes.

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