i am almost positive the answer is not 320,000 as a saw the exact question asked by someone else before. I can guarantee uou its not a one formula problem.

Question 10 (1 point) Saved The Gilmore Inc. is unlevered. It has 120,000 shares outstanding and its current stock price is $10. The current cost of equity is 9%. It is considering issuing $800,000 in new debt with a 5% interest rate. It would repurchase $800,000 worth of own stock with the proceeds from this debt issue. The effective marginal tax bracket is 40%. What would be the change in the value of the firm as a result of this debt issuance? $1,520,000 O none of the above $0 $1,200,000 $320,000