Consider a company that is currently all-equity financed with a share price of $11.0 and 3.2M (M=million) outstanding shares. The corporate tax rate is 21%. The company unexpectedly announces a leveraged recap: it will soon borrow $10.9M in permanent debt in order to buy back existing equity shares. The debt is risky, so the company might enter financial distress in the future. Q: If the share price goes up by $0.45 right after the announcement, what is the present value of future financial distress costs that is reflected in the new share price? Report your answer in million (M) and round it to 2 decimal places