Truckin' Transportation Inc. (TT) generates perpetual annual EBIT of $500. (Assume that the EBIT, and all other cash flows, occur at year end and that we are currently at the beginning of a year.) TT has 1,000 shares outstanding. The stockholders of TT require a return of 9%. Assume that TT is initially all-equity financed. It is considering an open market stock repurchase. It plans to buy 20% of its outstanding shares at the price that prevails prior to the repurchase (under the all-equity capital structure). The repurchased shares will be cancelled. It will finance the repurchase by issuing perpetual bonds with a coupon rate (and yield) of 3%. Assume that the tax rate is 40%. Answer the questions that follow. Part 1 What is the price per share for IT stock prior to the repurchase? (Round your answer to two decimals.) $| 3.33 Check Answer Part 2 What is the stock price after the repurchase is complete? (Round your answer to two decimal places.) $| 3.67 v Check Answer Part 3 Now assume that debt increases the probability of financial distress. Assume that the present value of distress costs is $160. What is the stock price after the repurchase including the costs of financial distress? (Round your answer to two decimal places.) 3.80 X Check