Question: D. $1,875,000 Cu 40: All other things being equal, if the company has a debt of $100 million with an interest rate of 10%

D. $1,875,000 Cu 40: All other things being equal, if the company

D. $1,875,000 Cu 40: All other things being equal, if the company has a debt of $100 million with an interest rate of 10% per year. With the corporate tax rate of 25%, how much more is the value of the levered firm compared to the unlevered firm according to M&M Theory? A. $25 million B. $10 million C. $12 million D. $20 million

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