The Old Factory is currently an all-equity firm with 20 million shares outstanding and a share price of $7.50 per share. Although investors currently expect The Old Factory to remain an all-equity. However, The Old Factory is planning to issue $50 million of long term debt to fund a new investment. The Old Factory has a tax rate of 30%.
What is the market value of The Old Factory's assets (including any tax shields) just after the debt is issued?

Answer rating: 100% (QA)

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