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Use the following information for the next 3 problems. ACME Industries is in the 25% tax bracket, has a net income of $2 million for the next year. and distributes 40% of its earnings as dividends. Net income is expected to grow at a constant rate of 4% per year, 100,000 shares of stock are outstanding, and the current cost of equity is 12%. The company is considering a recapitalization where it will buyback 20,000 shares and have a new net income of $1,800,000 after paying the interest. The new cost of equity is 12.5%. What is the stock's current price per share (before the recapitalization) using the dividend discount method? O $90 $100 $105 $110 $95 Using the information from the previous problem, what will be dividend per share after recapitalization? $8 $10 O $7 $6 $9 Question 7 1 pts Assuming the company maintains the same payout ratio, what will be its stock price AFTER recapitalization (use the dividend discount model)? $87.92 $105.88 O $95.87 O $114.43 $76.54