Assume the corporate tax rate is $30\%.$ The firm has no debt in its capital structure. It is valued at $$100$ million. According to the MM theory, what would be the value of the firm if it issued $$50$ in perpetual debt and repurchased the equity?

Assume the corporate tax rate is $30\%.$ The firm has no debt in its capital structure. It is valued at $$100$ million. According to the MM theory, what would be the value of the firm if it issued $$50$ in perpetual debt and repurchased the equity?

$$130$

$$100$

$$115$

$$65$