An unlevered firm currently has a value of $$10$ million. The firm has a tax rate of $40\%.$ The firm wishes to replace $$5$ million of its equity with $$5$ million of permanent debt. However, if it increases its leverage, the PV of the expected costs of financial distress would increase from $$0$ to $$2$ million. What is the value of the levered firm if it goes ahead with this plan?

A$)$ $$14$ million

B$)$ $$12$ million

C$)$ $$10$ million

D$)$ $$11$ million

E$)$ None of the above.

$26.$ Railwaze Corp. is currently an all$-$equity firm with a market value of $$88,000,000$ and a stock price of $$55$ per share. If the firm does a $5-$for$-2$ stock split, what will be the price per share after the split?

A$)$ $$22$

B$)$ $$55$

C$)$ $$137\mathrm{.}50$

D$)$ $$33$

E$)$ $$88$