Question 28 (1 point) Starlight Systems has currently debt of $210M and equity of $350M, both at market values. Starlight's normal capital structure policy is to keep the dollar value of the debt constant. Starlight plans to buy a business for $90M and fund this acquisition with new debt, but has not announced this yet. Assume that the Net Present Value of this acquisition is zero and that the riskiness of the firm's assets will not change with the acquisition. As before, Starlight will keep the new value of debt constant after the acquisition, which will increase the expected costs associated with financial distress, PV(FDC), from $10M currently to $45M after the acquisition. Financial distress costs and corporate taxes of 30% are the only relevant market imperfections. What will be the overall net benefit of using debt [PV (ITS)PV (FDC)] after the acquisition? $45M $49M $53M $90M