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ABC Corp. has 30,000,000 shares outstanding with a market price of $20 per share and...

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Finance

ABC Corp. has 30,000,000 shares outstanding with a market price of $20 per share and no debt. The unlevered cost of capital is 15.00%. ABC has had consistently stable earnings, and pays a 35.00% tax rate. Management plans to borrow 200,000,000 on a permanent basis through a leveraged recapitalization in which they would use the borrowed funds to repurchase outstanding shares. After the recapitalization, the total value of ABC as a levered firm is closest to?

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