If an unlevered firms equity (i.e. value) = 100, and it wants to lever up by getting a loan where debt is permanent at 20, tax = 20%, and debt is riskless. What is the new value?

- I am confused on if the firms value (given debt is permanent) will be 100-50 = 50, or if it follows MM proposition with taxes where V(levered) = V(unlevered) + PV (tax shield) = V(unlevered) + (tax * Debt) = 100 + (20% * 20) = 104, or D+E = 100+20 = 120