Neal Enterprises has no debt. Its current total value is $45 million.

Requirement 1:

Ignoring taxes, what will the companys value be if it sells $16 million in debt? Assume debt proceeds are used to repurchase equity. (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).)

Value of the firm

$ 45000000

Requirement 2:

Suppose now that the companys tax rate is 40 percent. Assume debt proceeds are used to repurchase equity. What will its overall value be if it sells $16 million in debt? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).)

Value of the firm

$