QUESTION 8 Consider the following formula: VL = VU+ TD What does the term TD represent: . . the interest tax shield each vear. O B. the value of the firm with leverage. OC. the present value of the interest tax shield. O D. the preset value of the future interest payments. QUESTION 9 Galt Industries has 50 million shares outstanding and a market capitalization of $ 1.25 billion. It also has $ 750 million in debt outstanding. Galt Industries has decided to delever the firm by issuing new equity and completely repaying all the outstanding debt. Assume perfect capital markets. Suppose you are a shareholder in Galt Industries holding 600 shares and you disagree with this decision to delever the firm. You can undo the effect of this decision by: O A. Selling 360 shares and lending $9000 O B. Borrowing $ 9000 and buying 360 shares of the stock OC. Borrowing $6000 and buying 240 shares of stock O D. Selling 240 shares of the stock and lending $6000