Question 13 3 points Save Answer Use the following information to answer questions 10-16. AAA Corporation and BBB Corporation are identical in every way except their capital structures. AAA Corporation, an all-equity firm, has 25 million shares of stock outstanding, currently worth $55 per share. BBB Corporation uses leverage in its capital structure. The market value of BBB's debt is $400mil., and its cost of debt is 4.5 percent. Each firm is expected to have earnings before interest and tax of $165mil. in perpetuity. Assume that every investor can borrow at 4.5 percent per year. Corporate tax rate is 35%. Q13. Construct an investment strategy in which an investor purchase 15% of AAA's equity and replicates both the cost and dollar return of purchasing BBB's equity. In other words, how much should you borrow to construct an investment strategy that is the same as purchasing 15% of BBB's equity? O $18.33 mil. O $39 mil. O $48 mil. O $2.16 mil. O $1.76 mil. Question 13 3 points Save Answer Use the following information to answer questions 10-16. AAA Corporation and BBB Corporation are identical in every way except their capital structures. AAA Corporation, an all-equity firm, has 25 million shares of stock outstanding, currently worth $55 per share. BBB Corporation uses leverage in its capital structure. The market value of BBB's debt is $400mil., and its cost of debt is 4.5 percent. Each firm is expected to have earnings before interest and tax of $165mil. in perpetuity. Assume that every investor can borrow at 4.5 percent per year. Corporate tax rate is 35%. Q13. Construct an investment strategy in which an investor purchase 15% of AAA's equity and replicates both the cost and dollar return of purchasing BBB's equity. In other words, how much should you borrow to construct an investment strategy that is the same as purchasing 15% of BBB's equity? O $18.33 mil. O $39 mil. O $48 mil. O $2.16 mil. O $1.76 mil