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9 Of Next Brown ASA is financed by equity only. The company has 2 million...

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9 Of Next Brown ASA is financed by equity only. The company has 2 million shares outstanding with a market value of $50 per share. Brown decides to change its capital structure. The company borrows $50 million at 4% interest rate; the debt will be used to repurchase shares of equity. The debt is perpetual. The corporate tax is 30%. (There are no personal taxes). What is the value of Brown after the change of capital structure? A $ 165 million B $ 115 million. E C $ 150 million. D $ 100 million

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