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Liurary Home Students Staff - TDN is currently an all-equity firm that has 22,000 shares of stock outstanding with a market price of $25 a

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Liurary Home Students Staff - TDN is currently an all-equity firm that has 22,000 shares of stock outstanding with a market price of $25 a share. The current cost of equity is 12 percent. The company tax rate is 30 percent. The firm would like to restructure its capital by adding $225,000 of debt with a coupon rate of 6.25 percent and repurchase its 9000 shares. The debt will sell at par. Assuming MM1963 world with tax, calculate the value of the equity after restructuring? O a $325,000 Ob $392,500 Oc$550,000 Od $775,000 O. None of the above

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