14. Widget Inc. is currently worth $20,000,000. It is told that if it issues $2,000,000 of perpetual debt (and uses the proceeds to repurchase equity) the value of the firm will increase by $580,000. If the total bankruptcy costs and agency costs combine to be a cost of $40,000, what is Fidgets marginal corporate tax rate? Ignore personal taxes.

a.	29%
b.	30%
c.	31%
d.	none of the above