Stock price will be because of tax shield benefit of debt

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Currently, berrys Pizza Kitchen has 0 debt, its stock price is $22 per share, and shares outstanding are 24 million shares. It plans to borrow $20 million from the market to repurchase its stocks. The tax rate is 35%. What is the new stock price will be because of tax shield benefit of debt, and how many shares it can repurchase? (Write down the calculation process with your answer, otherwise you will receive 0)

Reference no: EM131937336

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