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SteelCo is an all-equity firm with a share price of R15 and 300000 shares outstanding. The company is considering restructuring its capital structure by taking

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SteelCo is an all-equity firm with a share price of R15 and 300000 shares outstanding. The company is considering restructuring its capital structure by taking on R25million in debt and repurchasing shares. This debt will be paid down by R5 million each year. If the corporate tax rate is 30% and the cost of debt is 6\%. Assume M\&M Proposition II (with taxes) holds. Determine the value of the restructured firm

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