Bally, inc. is an all-equity firm with assets worth $25 billion and 10 billion shares outstanding. bally plans to borrow $10 billion and use the funds to repurchase shares. the firm’s corporate tax rate is 35%, and bally intends to keep its outstanding debt equal to $10 billion permanently
1) 15 billion
2) 20 billion
3) 25 billion
4) 30 billion