You work as CFO at a company and you have to make a decision on how much to borrow. You currently have $10$ million shares outstanding, and the market price per share is EUR $50.$ You also currently have EUR $200$ million in debt outstanding $($market value$).$ You are rated as a BBB corporation now. Your stock has a beta of $1\mathrm{.}5$ and the riskfree rate is $8\%.$ Assume that the market risk premium is $5\mathrm{.}5\%.$ The marginal tax rate is $46\%.$ You estimate that your rating will change to a B if you borrow EUR $100$ million.The BBB rate now is $11\%.$ The B rate is $12\mathrm{.}5\%.$

a$.)$ What is your weighted average cost of capital with and without the EUR $100$ million in borrowing?

b$.)$ Given the marginal costs and benefits of borrowing the EUR $100$ million, should you go ahead with it$?$

c$)$ If you borrow the EUR $100$ million, what will the price per share be after the borrowing?