Emily Corp. is an unlevered firm with a market value of $$45$ million. The firm has a tax rate of

$35\%.$ The firm plans to replace $$12$ million of its equity with $$12$ million of debt at an interest

rate of $10\%.$ The debt will be held for the next $25$ years only. What would be the value of the

levered firm if it goes ahead with this plan? The answer is B $(48\mathrm{.}81)$

A$)$ $$49\mathrm{.}2$ million

B$)$ $$48\mathrm{.}81$ million

C$)$ $$45\mathrm{.}42$ million

D$)$ $$46\mathrm{.}2$ million

E$)$ $$45$ million