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Connor Corp. has an EBIT of $980,000 per year that is expected to continue in perpetuity. The unlevered cost of equity for the company is 14 percent, and the corporate tax rate is 23 percent. The company also has a perpetual bond issue outstanding with a market value of $1.93 million. What is the value of the company? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar, e.g., 1,234,567.) Value of the company Hominy, Inc., has debt outstanding with a face value of $5 million. The value of the firm if it were entirely financed by equity would be $18 million. The company also has 390,000 shares of stock outstanding that sell at a price of $34 per share. The corporate tax rate is 23 percent. What is the decrease in the value of the company due to expected bankruptcy costs? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar, e.g., 1,234,567.) Financial distress costs