Uptown Interior Designs Is an All Equity fiRm That Has

Multiple Choice

Uptown Interior Designs is an all equity firm that has 40,000 shares of stock outstanding. The company has decided to borrow $1 million to buy out the shares of a deceased stockholder who
Holds 2,500 shares. What is the total value of this firm if you ignore taxes?

A) $15.5 million
B) $15.6 million
C) $16.0 million
D) $16.8 million
E) $17.2 million