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Firm A is currently 100% equity financed, and it has the following balance sheet: Assets Debt 100,000 0 Equity 100,000 Suppose Firm A wants to

Firm A is currently 100% equity financed, and it has the following balance sheet:

Assets Debt

100,000 0

Equity

100,000

Suppose Firm A wants to invest in a project that has total present value equal to $50,000. Using MM propositions with taxes, and assuming that the corporate tax rate is 40%, what would be the total value of Firm A (value of assets) if it used equity to finance the project?

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