Company G is currently financed with 50 per cent debt and 50 per cent equity. The firm pays USD125 each year to its debt investors (at a 10 per cent cost of debt) and the debt has no maturity date. What will be the value of the equity if the firm repurchases all of its debt and raises the funds by issuing equity? Assume that all of the assumptions in Modigliani and Millers Proposition 1 hold