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26. A company has: a geared cost of equity of 12%; an ungeared cost of equity of 10%;,a WACC of 9.25%; market value of equity

26. A company has: a geared cost of equity of 12%; an ungeared cost of equity of 10%;,a WACC of 9.25%; market value of equity of $210 million; market value of debt of $70 million;a tax rate of 30%. The company plans to raise $20 million of debt and use these funds to repurchase shares. According to Modigliani and Millers theory with tax, WACC would move to

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