VanMannen Foundations, Inc. (VF) is a zero-growth company that currently has zero debt, and it has the data shown below. Now the company is considering using some debt, moving to the market value capital structure indicated below. The money raised would be used to repurchase stock. It is estimated that the increase in risk resulting from the additional leverage would cause the required rate of return on equity to rise somewhat, as indicated below. 20% 80% 10,000 $48.00 7.0% $80,000New Debt/Value EBIT Growth- Orig cost of equity,s 0%New Equity/Value- 100%No. of shares 11.0%Price per share New cost of equity Tax rate- 40%Interest rate Now assume that VF is considering changing from its original zero debt capital structure to a new capita structure with even more debt. This results in changes in the cost of debt and equity, and thus to a new WACC and a new value of operations. Assume VF raises the amount of new debt indicated below and uses the funds to purchase and hold T-bills until it makes the stock repurchase. What is the stock price p share immediately after issuing the debt but prior to the repurchase? Debt Value- Equity Value 40% 6096 value ofnew debt New WACC- $213,333 9.0%