Barrier Reef Island Resorts Has No Debt

Multiple Choice

Barrier Reef Island Resorts has no debt.Its current total value is $58 million.What will the company's value be if it sells $21 million in debt securities and has a tax rate of 30 per cent,assuming that the proceeds will be used to purchase equity?

A) $51 700 000
B) $60 300 000
C) $62 300 000
D) $64 300 000
E) $65 140 000