Question 9 (1 point) 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? $1,200,000 $320,000 Onone of the above $0 $1,520,000