Based on the current capitalization, Roce Sdn Bhd $($RSB$)$ has made the following forecast for the coming year: Interest expense Operating income $($EBIT$)$ Earnings per share RM$1,200,000$ RM$20,000,000$ RM$2\mathrm{.}50$ The company has RM$20,000,000$ worth of debt outstanding and all of its debt yields $6\%.$ The company$$s tax rate is $30\%.$ The company$$s price earnings $($P$/$E$)$ ratio has traditionally been $8$x$.$ The company$$s investment bankers have suggested that the company recapitalize. Their suggestion is to have an additional amount of debt by issuing enough new bonds at a yield of $6\%$ to repurchase $1,400,000$ shares of common stock. Assume that the repurchase will have no effect on the company$$s operating income; however, the repurchase will increase the company$$s dollar interest expense. Also, assume that as a result of the increased financial risk, the company$$s price earnings $($P$/$E$)$ ratio will be $8$x after the repurchase. What would be the expected year$-$end stock price if the company proceeded with the recapitalization? Should RSB proceed with the recapitalization?