Rozanski Co. is currently all-equity financed and has a value of $300,000. They are planning to issue $100,000 of permanent debt, and using the proceeds to repurchase equity. If they issue the debt, they will have a 20 percent probability of undergoing financial distress in 3 years, which will cost the company $120,000. With a tax rate of 25 percent and a discount rate of 10 percent, what will be the value of the company if it issues the debt? $295,000 $300,000 $306,968 $325,000