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HZA Ltd has $100 million of perpetual debt outstanding with a cost of debt of 9% p.a. which is expected to remain unchanged. The company

HZA Ltd has $100 million of perpetual debt outstanding with a cost of debt of 9% p.a. which is expected to remain unchanged. The company is currently subject to a corporate tax rate of 30%. Following national elections, the incoming government unexpectedly passes a law that increases the corporate tax rate for all companies to 35%. Assuming perfect capital markets with positive corporate taxes, what will be the most likely immediate change in the market value of the company? Show all calculations. dont use excel use the formula

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