3. X-X is an all equity firm that has 400,000 shares of stock outstanding. The company is in the process of borrowing $8 million at 9% interest to repurchase 200,000 shares of the outstanding stock. What is the value of this firm after the capital structure changes if firm pays no tax? A. $16.8 million B. $16 million C. $20.0 million D. $21.2 million E. $32 million 3. X-X is an all equity firm that has 400,000 shares of stock outstanding. The company is in the process of borrowing $8 million at 9% interest to repurchase 200,000 shares of the outstanding stock. What is the value of this firm after the capital structure changes if firm pays no tax? A. $16.8 million B. $16 million C. $20.0 million D. $21.2 million E. $32 million