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A company has an EBIT of $5,095 in perpetuity.The unlevered cost of capital is 17.18%, and there are 29,450 common shares outstanding.The company is considering

A company has an EBIT of $5,095 in perpetuity.The unlevered cost of capital is 17.18%, and there are 29,450 common shares outstanding.The company is considering issuing $11,160 in new bonds at par to add financial leverage.The proceeds of the debt issue will be used to repurchase equity.The YTM of the new debt is 12.21% and the tax rate is 38%.What is the value of the firm after the restructuring?

$20,365

$20,931

$21,496

$22,062

$22,628

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