please help and show work. all information is given

Slecat Corp. is in the 40% tax bracket and has a capital structure that is composed entirely of equity. They are considering altering its capital structure to take advantage of prevailing interest rates. After consulting with several investment bankers, they obtain a before-tax cost of debt estimate of 8% if they recapitalize to 40% debt and 60% equity. The firm will use the proceeds from the debt issuance to repurchase shares of common stock. The corporation's existing stock has a beta of 1.6 on 20 million shares outstanding. Investors can earn a 4% rate of return on risk-free assets and a 14% rate of return on the market. Slecat's expected free cash flows next year are $80 million. These cash flows are expected to grow at a rate of 5% for the forseeable future. The company currently has no short-term investments nor preferred stock outstanding. What is the value of Slecat's common stock after the recapitalization? $25.00 $26.67 $28.50 $31.35