. Now assume that BF is considering changing from its original zero debt capit

. Now assume that BF is considering changing from its original zero debt capital structure to a new capital 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 BF 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 per share immediately after
issuing the debt but prior to the repurchase? Debt/Value = 40% Value of new debt = $247000
Equity/Value= 60% New WACC = 9.3% a. $27.90
b. $30.05
c. $32.26
d. $35.25
e. $40.20