Assume an M & M world with no corporate or personal taxes PQR Inc. is partly financed with riskless debt paying a 6% annual coupon. The market value of PQR s debt is $40 million if PQR were an all-equity company, the cost of equity would be 15% and the firm value would be $100 million determine the return to shareholders in the levered firm (rounded to the nearest whole percent)

a) 19% b) 21% c) 24% d) 30% e) 34%

*Please show process