7. A company is worth 100 million euros (equity 50 and debt 50) and decides to issue debt for an amount of 20 million. The corporate tax rate is 30%, the representative investor's personal tax is the same for gains by fixed-income and variable-income. The new values of the company (V), equity (E) and debt (D) are: a) V=120, E=50, D=70 and the Government would obtain a tax income of 6 because of taxes b) V=126, E=56, D=70 c) V=126, E=50, D=76 d) The value will depend on the representative investor's personal taxes, but as they are not known, you can not calculate the new value