Shazza Ltd has $200 million of perpetual debt outstanding with an interest cost of 8%. The company is currently subject to a corporate tax rate of 30%. Following national elections, the incoming government unexpectedly passes a law that lowers the corporate tax rate for all companies to 25%. According to Modigliani and Miller what will be the most likely immediate change in the market value of the company?

Group of answer choices

+$10 million.

$10 million.

+$50 million.

$50 million.