"The market value of equity of the Paratrooper Corp. is $150 million. It has 1M shares outstanding, no debt and its cost of equity is currently 10%. The firm plans to issue $60 million of perpetual debt at 3% interest rate. The proceeds will be used to repurchase an equal value of equity shares. The tax rate is 30%. What will be the new share price?"

$150

$168

$174

$165

$171