Lulu is an apparel manufacturer with no debt outstanding and a market value of $1,000 million. Lulu is considering borrowing $400 million and buying back its stock. The interest rate on debt is 9% and the firm faces a tax rate of 32%. Estimate the present value of interest savings assuming that the current yield to maturity of debt is 8%. Select one: a. $144 million b. $175 million c. $125 million d. $128 million