4. Clarkson Corporation is currently an all equity firm that has 450,000 shares of stock outstanding with a market price of $52.40 a share. The current cost of equity is 10.5 percent and the tax rate is 25 percent. The firm is considering adding $6.3 million of debt with a coupon rate of 6 percent to its capital structure. The debt will be sold at par value. What is the levered value of the equity?

	a	$18,855,000
	b	$19,247,000
	c	$18,496,000
	d	$19,042,000
	e	$18,637,000