a 25. Assume that personal investors pay a 40% tax rate on in- terest income and only a 20% tax rate on equity income. If the corporate tax rate is 30%, estimate whether debt has a tax benefit, relative to equity. If a firm with no debt and $100 million in market value borrows money in this world, estimate what the value of the firm will be if the firm borrows $50 million. 26. In the illustration in Problem 25, what would the tax rate on equity income need to be for debt to not have an ef- fect on value