2) Better Home and Garden (BHG) expects an EBIT of $160,000 every year forever. The company currently has no debt, and its unlevered cost of capital is 12%. Its average tax rate is 34%. Capital markets are perfect. The company wants to borrow $352,000 to repurchase shares. The debt will have an interest rate of 8% and will be kept constant forever. What is the approximate value of the firm with debt? a) 900,000 b) 1,000,000 c) 1,100,000 d) 1,200,000 e) 1,300,000 1) Other, Specify