Rally, Inc., is an all-equity firm with assets worth $25 billion and 10 billion shares outstanding. Rally plans to borrow $ 10 billion and use funds to repurchase shares. Rally's corporate tax rate is 35%, and Rally plans to keep its outstanding debt equal to $10 billion permanently. After the increase in leverage (i.e. if Debt-$10 billion) but before the share repurchase, what is the value of the debt? Hint: assume that markets are perfect but that there are taxes (corporate tax rate=35%). $13.5bn $10bn $8,5bn O $25bn