Tapley Dental Supplies Inc. is in a stable, no growth situation. Its S1 000,000 of debt consists of perpetuities that have a 10% coupon and sell at par. Tapley's EBIT is s oo ooo its cost of equity is 15%. it has 100 000 shares outstanding, all earnings are paid out as dividends, and its federa plus state tax rate is 40% aple could borrow an additional $500,000 at an interest rate of 13% without having to retire the original debt, and it would use the proceeds to repurchase stock at the current price notat e new e u r un t e. e increased risk from the additional leverage will raise the cost of equity to 17%. If Tapley does recapitalize, what will be the new stock price? O a. $17.00 O b. $17.20 ? ?. $16.50 d. $16.00 ? e. $16.75