The Broken Glass Toy is an all equity financed firm, which value is $3000 million with 300 million shares outstanding, and its shareholders require a retuin of 5%. BGT is considering a plan to borrow $200 million by issuing perpetual bonds with an annual coupon of 10%. The investment banker expects the bonds to be priced to yield 10%. The proceeds from the bond issue will be used to repurchase (and retire) shares. BGT will buy back shares at the pre-repurchase price. What share price will prevail after the share repurchase? BGT operates in Utopia, where there are no corporate taxes. 1.$9.00 2.$9.33 3.$10.00 4.$10.71