An all equity financed firm currently has a value of $120,000,000. Under M&M theory with tax but ignoring bankruptcy costs, how much does the value of the firm increase if it issues $15,000,000 in debt at 6% and repurchases equity at market value with the cash, given a 35% marginal tax bracket? Assume the interest expense will stay constant forever.

a) 6,,250,000

b) 5,250,000

c) 125,250,000

d) 315,000