Suppose that BBB pays corporate taxes of 35% and that shareholders expects the change in debt to be permanent.Assuming that capital markets are perfect except for the existence of corporate taxes,the share price for BBB after this announcement is closest to:

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D)V^U = $10.00 × 25 million shares = $250 million V^{L = VU} + τ_cB = $250 + .35($100)= $285 million/25 million shares = $11.40

Suppose That BBB Pays Corporate Taxes of 35% and That