Tether has currently equity for $350M and debt for $210M, with a fixed amount debt policy. Tether is planning to buy a competitor's business for $90M and fund this acquisition with new debt. Assume that the net present value (NPVU) of this acquisition is O and that the riskiness of the firm's assets will not change with the acquisition Tether will keep the new level of de constant after the acquisition, which will increase the expected costs associated with financial distress PV(FDC) from $10M currently to $45M after the acquisition. Financial distress costs and taxes are the only relevant market imperfections. The corporate tax rate is 30%. Question 24 (1 point) What is the value of the unlevered firm (VU) now, before the acquisition? OA) $ 570M OB) $ 497M OC) $ 550M OD) $ 507M Question 25 (1 point) What will the net benefit of using debt (PV(ITS) - PV(FDC)) be after the acquisition? OA) $ 45M OB) $ 49M OC) $ 90M OD) $53M Tether has currently equity for $350M and debt for $210M, with a fixed amount debt policy. Tether is planning to buy a competitor's business for $90M and fund this acquisition with new debt. Assume that the net present value (NPVU) of this acquisition is O and that the riskiness of the firm's assets will not change with the acquisition Tether will keep the new level of de constant after the acquisition, which will increase the expected costs associated with financial distress PV(FDC) from $10M currently to $45M after the acquisition. Financial distress costs and taxes are the only relevant market imperfections. The corporate tax rate is 30%. Question 24 (1 point) What is the value of the unlevered firm (VU) now, before the acquisition? OA) $ 570M OB) $ 497M OC) $ 550M OD) $ 507M Question 25 (1 point) What will the net benefit of using debt (PV(ITS) - PV(FDC)) be after the acquisition? OA) $ 45M OB) $ 49M OC) $ 90M OD) $53M