Bombay Company is a levered company that has a market value of debt of $500 and a market value of equity of $2,000. According to MM (1963), what will be the market value of equity if Bombay issues $200 of equity and use it to make a permanent reduction in the company's debt. Assume a 35% tax rate. $1,930 $2,130 $2,070 $2,430