This information pertains to the following 4 questions Marbel is a large all-equity retailer. The firm has just unecpectedly announced that it will borrow $200M and will use the proceeds to buy back shares. The firm will keep this amount of debt permanently. The corporate tax rate is 25%. The firm has 30M shares outstanding that traded for $13 in the stock market right before the announcement. At the announcement of this restructuring, the stock price increased to $14 per share. Assume that the only market imperfections are corporate taxes and financial distress costs. 34. The value of the interest tax shield (PV(ITS)) associated with the restructuring is: (A) $ 12.0M (B) $ 42.0M (C) $50.0M (D) $55.0M 35. Given the announcement reaction, what is the market's estimate for the present value of financial distress costs (PV(FDC))? (A) $ 10M (B) $ 20M (C) $ 25M (D) $ 30M This information pertains to the following 4 questions Marbel is a large all-equity retailer. The firm has just unecpectedly announced that it will borrow $200M and will use the proceeds to buy back shares. The firm will keep this amount of debt permanently. The corporate tax rate is 25%. The firm has 30M shares outstanding that traded for $13 in the stock market right before the announcement. At the announcement of this restructuring, the stock price increased to $14 per share. Assume that the only market imperfections are corporate taxes and financial distress costs. 34. The value of the interest tax shield (PV(ITS)) associated with the restructuring is: (A) $ 12.0M (B) $ 42.0M (C) $50.0M (D) $55.0M 35. Given the announcement reaction, what is the market's estimate for the present value of financial distress costs (PV(FDC))? (A) $ 10M (B) $ 20M (C) $ 25M (D) $ 30M