Tartan Industries currently has total capital equal to $7 million, has zero debt, is in the 25% federal-pius-atate tax bracket, has a net income of $1. milivon, and distributes 40% of its earnings as dividends. Net income is expected to grow at a constant rate of 5% per year, 100,000 shares of stock are outstanding, and the current WACC is 12.70%. The company is considering a recapitalization where it will issue $4 million in debt and use the proceeds to repurchase stock. Investmant bankers have estimated that if the company gaes through with the recapitalization, its before-tax cost of debt will be 10% and ita cost of equity will rise to 14.5%. a. What is the stock's current price per share (before the recapitalization)? Do not reund intermediate calculations. Round your anewer to the nearest cent + 6. Assuming that the compony maintains the same payout rotio, whot will be its stock price following the recapitalization? Assume that sheres are repurchased at the price caiculated in part a. Do not round intermediate calculations. Round your answer to thel neareat cent