Currently, an unlevered firm has 1000 outstanding shares and its equity cost of capital is 9%. You are given the distribution of the firm's value in one year: Value in one year $25000 $35000 $45000 Probability 0.05 0.80 0.15 The firm plans to repurchase some of its existing shares by issuing one-year bonds at 4%. The total amount collected from bond issuances will be $25000. You are also given that the bankruptcy costs are $5000 and the present value of financial distress costs is calculated at the debt cost of capital. Determine the firm's value after the repurchase. Possible Answers A 32400 B 32600 32800 D 33000 E 33200