XYZ has a market capitalization of $60.778 billion and $6.707 billion in long-term debt. XYZs debt to equity ratio is 0.55. XYZs managers believe that the present value of financial distress costs will exceed tax benefits by $20 million if XYZ were to issue debt to raise the $0.5 billion. Assuming an otherwise perfect market, estimate XYZs firm value if the debt issuance were to go ahead. XYZ has a corporate tax rate of 40 percent. Discuss any qualitative factors which XYZ should consider before making a debt issue.