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You are the CEO of a firm that has no debt - all capital comes from common equity. Currently, the market value of your firm

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You are the CEO of a firm that has no debt - all capital comes from common equity. Currently, the market value of your firm (its market capitalization) is $215 million. Assume that the corporate tax rate is 21%. If you wore to issue $29 million of debt and buy back shares; what is your estimate of how much firm value will change. Assume that corporate tax rates are the only market imperfection and that your firm wil consistently have the profitability to pay interest on the debt. Report your answer in milions rounded to the nearest hundredth (i.6,$11,500,000 would be 11,5)

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