1. An all-equity company's EBIT is expected to be $840,000 every year forever. The company's cost of capital is 12% and it can borrow at 6.25%. The company is considering borrowing $2,250,000, which would be used to buy back shares. Assume all available earnings are immediately distributed to common shareholders and all the M&M assumptions are satisfied except the company's corporate tax rate is 14%. According to the M&M Propositions with taxes, what is the company's value under the current capital structure?

round the final answer to 2 decimals.