215.3
3. Your firm is considering raising $10 million
dollars in new equity and using it to retire $10 million of debt
(with 8% coupon) that had been considered to be permanent. The
tax rate is 34% and the transaction costs will be $200,000. The
current total value of the firm is $100 million. What will the
new total value of the firm be after the transaction? (2 pts.)